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Mathematics, 23.02.2021 23:50 naomicervero

A bond has a $1,000 par value, nine years to maturity, and pays a coupon of 5.25% per year, semiannually. The bond is callable in three years at 115% of its par value. If the bond’s yield to maturity is 5.32% per year, what is its yield to call? Please show work. Or explain how to get answer through the calculator.

A) 9.08%

B) 9.24%

C) 9.86%

D) 9.62%

E) 8.96%

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