Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's nominal yield to call?
A. 6.77%
B. 5.09%
C. 4.42%
D. 5.54%
E. 5.59%
Answer: E
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