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Freight Corp's 1 2 % coupon rate bond, semiannual payments matures in 2 0 years and can be called back in five years. The bond

Freight Corp's 12% coupon rate bond, semiannual payments matures in 20 years and can be called back in five years. The bond has a call price of $1100 five years from now. The bonds sell at a price at $1300 and the yield curve is flat. Assuming that the interest rates in the economy are expected to remain at current levels? What would be the Yield to Call? A )3.29% B)6.58% C)8.78% D)5.68%7.87%

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