A 12-year 1000 face value bond pays a 9 percent yearly, Ask an Expert

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problem: A 12-year, $1,000 face value bond pays a 9% yearly coupon and has a yield to maturity of 7.5%. The bond can first be called four (4) years from now, at a call price of $1,050. find out the bond’s yield to call?

[A] 7.50%

[B] 11.86%

[C] 6.73%

[D] 7.10%

[E] 13.45%

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