A bond has a $1,000 par value, 16 years to maturity, and pays a coupon of 6.0% per year, annually. The bond can be called in seven years at $1,150. If the bonds yield to maturity is 6.39% per year, what is its yield to call?

Question 2 options:

A)

8.68%

B)

8.87%

C)

8.11%

D)

8.41%

E)

7.87%