Consider corporate bonds with PMT: a coupon rate of 12% that pay interest annually (the nature of these interest payments determines the compounding frequency of the bond- in this case it is annual compounding). N: 3 years to call (maturity means the bond contract is over) FV: the call price (this is what the bond is worth when it is called back). PV: the market price of the bond is $1180 - what the bond is worth in the market The Call Price of the bond is $1120 and the bond can be called in 3 years Notice the difference in FV above. Find the Yield to Call for these bonds (solve for I/Y) and round to the nearest dollar. O 8.61% O 9.85% 9.17% O 11.03%