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A 4.85% coupon bond with 30 years left to maturity can be called in 27 years; The call premium is 1 year of coupon payments;

"A 4.85% coupon bond with 30 years left to maturity can be called in 27 years; The call premium is 1 year of coupon payments; The bond is currently offered for sale at $1,144.10 (Assume interest payments are semiannual) - What is the bond's yield to maturity?"

4.02%

3.60%

8.38%

8.03%

3.97%

4.24%

2.01%

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