A bond has a $1,000 par value, 15 years to maturity, and pays a coupon of 5.5% per year, semiannually. The bond can be called in four years at 110% of its par value. If the bonds current yield is 5.22% per year, what is its yield to call?

Question 7 options:

A)

6.42%

B)

6.86%

C)

6.62%

D)

7.12%

E)

6.20%