Search this course Module 3 Homework 14 o Check My Work (No more tries available) 15 IG 17 1R 10 o M ebook O It is now January 1, 2019, and you are considering the purchase of an outstanding bond that was issued on January 1, 2017. It has a 9.5% annual coupon and had a 20-year original maturity (tt matures on December 31, 2036.) There is 5 years of cail protection (until December 31, 2021), after which time it can be called at 108-that is, at 108% of Opor, or $1,000. Interest rates have declined since it was issued, and it is now selling at 120.06% of par, or $1,200.00 a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places 9.48 What is the yield to call? Do not round Intermediate calculations. Round your answer to two decimal places 9.44 b. If you bought this bond, which return would you actually cam? I. Investors would not expect the bonds to be called and to earn the YTM Because the YTM is less than the YTC IL Investors would expect the bonds to be called and to earn the YTC-because the YICI less than the YTM 111. Investors would expect the bonds to be called and to earn the IC because the VTC is greater than the YTM I. Investors would not expect the bonds to be called and to earn the YTM because the YTMs greater than the YTC B 11 Support the bond had been selling at a discount rather than a premium. Would the yield to maturity have been the mostly return, or would the yield to call have been most key Investors would expect the bonds to be called and to earn the VTC because the VTC is greater than the YTM I on would expect the bonds to be called and to earn the VTC because the VTC than the YTH TIL Investors would not expect the bonds to be called and to earn the VTM because the YTHis greater than the YTC Investors would not expect the bonds to be called a car they because the is than theYT TV Check Sty Work Ne more trwahl) 7