A 10% coupon bond with annual payments and 10 years to maturity is callable in three years at a call price of $1,100. If the bond is selling today for $975, the yield to call is
A. 10.26%.
B. 10.00%.
C. 9.25%.
D. 13.98%.
E. None of the options are correct.
D. 13.98%.
FV = 1100, n = 3, PMT = 100, PV = 975, i = 13.98%.
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