The bond was callable after 5 years. But it was actually called after 6 years. So you are trying to figure out what your rate of return has been given that you held it for 6 years. So "N" is going to be = 6. I hope that makes sense. 

 Now, remember that it is a 14%, $1,000 par value bond, so the "PMT" has not changed = 140. 

 The FV is now the called value which is the par value plus the 9% premium = 1090. 

 You paid a PV = -1,000, 

 So you would then solve for the "I/YR" to see what rate of return you made.

 

Seven years ago the Templeton Company issued 20-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 7.5% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

Explain why the investor should or should not be happy that Templeton called them?