A bond has a $1,000 par value, 20 years to maturity, and pays a coupon of 5.5% per year, annually. The bond is callable in ten years at $1,075. If the bonds yield to maturity is 5.89% per year, what is its yield to call?

Question 3 options:

1)

5.87%

2)

6.68%

3)

6.43%

4)

6.57%

5)

6.11%