11.

A municipality has issued a callable bond with a coupon rate of 6% payable annually. At the time of issue, the bond traded at par value. 6 years have now passed and the municipality is calling the bond, on the same date that it makes its sixth interest payment. It is required to pay bondholders a call premium of 7%. What has been the bondholders effective Yield to Call? 4.64% 6.196 1.72% 6.0% 6.98%