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Suppose you have a 12 percent, 20-year bond traded at $850. If it is callable in 5 years at $1,100, what is the bond's yield

Suppose you have a 12 percent, 20-year bond traded at $850. If it is callable in 5 years at $1,100, what is the bond's yield to call? Interest is paid semiannually.

a.

9.0 percent
b.

9.4 percent
c.

16.5 percent
d.

8 percent
e.

18.0 percent

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