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Stetson and Co., Inc issued a bond 6 years ago. The bond had a 15 year maturity, a 12.5% coupon paid annually, a 8% call

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Stetson and Co., Inc issued a bond 6 years ago. The bond had a 15 year maturity, a 12.5% coupon paid annually, a 8% call premium and it was issued at par, $1000. Today. Stetson and Co, Inc called the bonds. If the original investors had expected Stetson and Co. to call the bonds in 6 years, what was the yield to call at the time the bonds were issued? (5 points)

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