PLEASE answer fully and fill in the blanks. Also, point out the answer clearly.

4-6: Bond Yiclds Problem 4-22 Yield to Maturity and Yield to Call A mot International's bonds havecurrent market price of $1,350. The bonds have an 11% annual coupon payment . $1,000 fece value, and 10 years left until m at rity. The bonds may be caled n 5 years at 109% of face value Call price-$1,090 a. What is the yield to maturity? Round your answer to two decimal places b. What is the yicld to call, if they are called in S ycars? Round your answer to two deaimal places c. Which yield might investors expect to earn on these bonds, and why? Select nvestons would xpect the bonds to be called and to cam the YTC because the YTM is less than the YTC. II. Investors would not expect the bonds to be celled and to earn the YTM because the YTM is greater than the YTC. III. Imestors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM re ndicates that the call provision g ves the firm the n nt to call them at the end of cach year bcginning in Year S In Year S, they may be called at 109% of face aluc, but in coch of the next 4 years ne call percentage il decine by 1 percentagC point. be called at 108% of face value, in Year 7 they ay be called at 107% of face velue, d so on. If the yield curve is horizontal and interest ates remain at their c rent level, he is the latest that investors might expect the firm to call the bonds? d. The bonds inden Thus, in Year 6 Select- Check My Work (2 remaining) Ieon Kay