A company has some bonds outstanding with maturity of 14 years and par value of $1,000. The coupon rate on those bonds is 12% with semi-annual payments and the yield to maturity is 9.75%. Those bonds can be called in 4 years at $1,150. What is the yield to call (YTC)?

Answer choice:

a. 9.90%

b. 8.80%

c. 7.78%

d. 11.09%

e. 12.40%