16

5.4524% is INCORRECT, it has to be another answer

Algo Co's 17 -year bonds currently sell for $1,204 and have a par value of $1,000. The annual coupon rate is 8.55% and interest payments are made semi-annually. The bonds can be called 7 years after issue at a premium of 3.75% over par value. What is their yield to call (YTC), 1 year after the initial issue? 6.6507% 6.5436% 5.4524% 5.1023\% 4.6183\%