A bond with 5 years remaining until maturity is currently trading for 101 per 100 of par value. The bond offers a 6% coupon rate with interest paid annually. The bond is first callable in 3 years, and is callable after that date on coupon dates according to the following schedule: End of Year Call Price

3 102

4 101

5 100

The bonds annual yield-to-first call is approximately equal (up to hundreds) to A) 2.88% B) 3.12% C) 3.45% D) 6.11% E) 6.25% F) None of the answers is correct