A 5% bond is purchased at $850 and the maturity is 15 years. It is first callable in 10 years. The bond's yield-to-call is closest to

A 5% bond is purchased at $850 and the maturity is 15 years. It is first callable in 10 years. The bond's yield-to-call is closest to

A 5% bond is purchased at $850 and the maturity is 15 years. It is first callable in 10 years. The bond's yield-to-call is closest to 







A) 3.79%
B) 6.49%
C) 6.70%
D) 7.03%







Answer: D