A 10-year, 6.75% semiannual coupon bond with a par value of $1000 of the ACD Company may be called in four years at a call price of $1,060. The bond sells for $1,100. What is the bonds current yield?

a. 6.14%

b. 6.75%

c. 5.44%

d. 3.07%

e. None of these are correct