1. Xerox Corp. bonds bearing an annual coupon rate of 8%, pay coupons semiannually, have 10 years remaining to maturity, but callable in 2 years from now at $1,100. It is currently priced at $1,168.54 per bond. What is the Xerox Corp. annual yield to call?

A) 0.38%

B) 2.00%

C) 3.50%

D) 4.00%

E) 7.00%

F) None of the above (state your answer)