A 10-year bond has a 10 percent annual coupon and a yield to maturity of 12 percent. The bond can be called in 5 years at a call price of $1,050 and the bonds face value is $1,000. Which of the following statements is most correct? Please explain why.

a. The bonds current yield is greater than 10 percent.

b. The bonds yield to call is less than 12 percent.

c. The bond is selling at a price below par.

d. Both answers a and c are correct.

5. None of the above answers is correct.