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Company Z's bonds currently sell for $1233 and have a par value of $1,000. They pay a $110 annual coupon and have a 15-year maturity,

Company Z's bonds currently sell for $1233 and have a par value of $1,000. They pay a $110 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to call (YTC)?

a. 8.24% b. 7.25% c. 7.41% d. 8.12% e. 7.77%

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