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Keenan Industries has a bond outstanding with 25 years to maturity, a 7.45% nominal coupon, semiannual payments, and a $1,000 par value. The bond has

Keenan Industries has a bond outstanding with 25 years to maturity, a 7.45% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 5.90% nominal yield to maturity, but it can be called in 5 years at a price of $1,095. What is the bond's nominal yield to call? Do not round your intermediate calculations.

a. 3.18%
b. 2.30%
c. 4.76%
d. 4.61%
e. 2.76%

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