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Severn Industries has a bond outstanding with 20 years to maturity, a 7.0% coupon paid semiannually, and a $1,000 par value. The bond has a
Severn Industries has a bond outstanding with 20 years to maturity, a 7.0% coupon paid semiannually, and a $1,000 par value. The bond has a 6.0% nominal yield to maturity, but it can be called in 5 years at a price of $1,072.82. What is the bonds nominal yield to call?
a. 5.00%
b. 5.20%
c. 5.40%
d. 5.60%
e. 5.80%
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