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A firms bonds have a maturity of 23 years with a $1,000 face value, a 12 percent semiannual coupon, are callable in 5 years at

A firms bonds have a maturity of 23 years with a $1,000 face value, a 12 percent semiannual coupon, are callable in 5 years at $1,100, and currently sell at a price of $1,180. What is their yield to call (YTC)?

a.

9.99%

b.

12.00%

c.

9.07%

d.

10.09%

e.

7.61%

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