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A firms bonds have a maturity of 17 years with a $1,000 face value, a 9 percent semiannual coupon, are callable in 4 years at

  1. A firms bonds have a maturity of 17 years with a $1,000 face value, a 9 percent semiannual coupon, are callable in 4 years at $1,040, and currently sell at a price of $1,084. What is their yield to maturity (YTM)?

    a.

    8.08%
    b.

    6.58%
    c.

    8.19%
    d.

    7.41%
    e.

    9.00%

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