A bond is being issued by General Electric Corp. using Merrill Lynch as the lead underwriter. The bond will have a 30-year final. It pays interest semi-annually and is both callable at 101% in 5 years and has a sinking fund that will retire 2% of the original amount outstanding beginning in Year 3 and operating every year until maturity.
With the coupon on the bond set at 8.25%, what is the market yield on the security if it is initially offered at Par?