.. Problem 7. (Vield to Maturity and Yield to Call ook Kampton Enterprises bands outstanding with a $1,000 the value and 10 years left until maturity. They have a 12 annual coupon payment and their current price is $1,170. The bonds may be called in 5 years at 109% of face value (Call price $1,090) What is the yield to maturity? Do not round intermediate calculation. Round your answer to two decimal places 5. What is the vied to call they are cated in ars? Do not round Intermediate action found your answer to two decimal place with yield might investors expect to eam on these bonds? Why? Investor would not expect the bonds to be called and to earn the YTM because the YTM than the VTC 1. Investors would expecte bords to be called and to earn the YTC because the YTC than the YTM II. trivestors would expect the bords to be called and to earn they because the YTC is greater than the YTM IV. Investors would not expect the bonds to be called and to the YTM because the YTM is greater than the YTC The bonds indenture indicates that the call provision gives the form the right to call the bonds at the end of each year beginning in Years In Year the bonds may be called at 1095fce value, but in each the next years, the cal percentage will decline by 14. Thus, in Your 6, they may be called M10 of face value in Year, they may be called 107 of face values and so forth. If the id curveis hortzontal and interest rates remain at their current level, when the west that investors might expect the firm to call the bonds? Do not round intermediate calculations In Year ev