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Tire Inc.'s bonds currently sell for $1,130 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity,

Tire Inc.'s bonds currently sell for $1,130 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?

A. 8.40%

B. 8.25%

C. 7.95%

D. 7.58%

E. 7.35%

7.35%

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