XZYY, Inc. currently has an issue of bonds outstanding that will mature in 33 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 13% with annual coupon payments. The bond is currently selling for $848. The bonds may be called in 5 years for 116% of par value. What is your expected quoted annual rate of return if you buy the bonds and the company calls them when possible?

20.25%

15.36%

22.25%

16.81%

13.77%