Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?

A. 8.56%
B. 9.01%
C. 9.46%
D. 9.93%
E. 10.43%


Answer: B

Business

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