Suppose MicroDrives 9% 15-year bonds had a provision that permitted the company, if it desired, to call the bonds 10 years after the issue date at a price of $1,100. Suppose further that 1 year after issuance the going interest rate had declined, causing the price of the bonds to rise to $1,528.16.

One year has passed since Allied issued its 10% coupon bonds. Allieds bonds have a deferred call provision with 10 years of call-protection period. You expect Allied will redeem its bond immediately after the call protection period. Allieds bonds are callable with 10% of call premium. The bonds are currently selling for $1,494.93. What is the yield to call?