Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with 20 years to maturity. It is a $1,000 par value bond paying 10 percent interest annually. The market price of the bond is $950.

The bond may be called any time after 3 years and the call premium is $200.

Find the yield-to-call.

Selected Answer:	E. 13.64%
Answers:	A. 9.52%
	B. 10.22%
	C. 11.75%
	D. 12.86%
	E. 13.64%

please explain step by step and show all the formula