Find what are the nominal yield to maturity

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Problem 1: A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 6 years at $1,203.55, and currently sell at a price of $1,357.99. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places.
YTM: %
YTC: %

Problem 2: What return should investors expect to earn on these bonds?

Option 1: Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM.

Option 2: Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC.

Option 3: Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC.

Option 4: Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM.-Select-

Reference no: EM132659559

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