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A $1,000 par value bond sells for $1,299. It matures in 10 years, has a 14 percent coupon, pays interest semiannually, and can be called
A $1,000 par value bond sells for $1,299. It matures in 10 years, has a 14 percent coupon, pays interest semiannually, and can be called in 5 years at a price of $1,100. What is the bond's YTM?
a) 7.55%
b) 11.53%
c) 10.66%
d) 9.77%
e) 9.34%
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