What is the yield to call

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Question - Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years, Current price of bond (Pm) = $1200, Number of years to first call (Nc) = 8, Call price (Pc) = $1150, Investor's holding period (horizon) = 6 years; interest rate from years 7-14= 10%. What is the yield to call?

a. 9.376%

b. 9.90%

c. 9.251%

d. 9.630%

Reference no: EM132753810

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