Question 22

Gilligan Co.'s bonds currently sell for $1,050 (Price of 105). They have a 5.75% semi-annual coupon rate and a 10-year maturity, and are callable in 5 years at $1,067.50 (Price of 106.75). What is the yield to worst (YTW)? (Note: the face value of the bonds is $1,000 - price of 100).

Group of answer choices

5.60%

5.11%

5.53%

4.62%