Problem:
Keenan Industries has a bond outstanding with 17 years to maturity, a 9.0% nominal coupon rate, semiannual payments, and a $1,000 par value. The bond has a 7.80% nominal yield to maturity, but it can be called in 5 years at a price of $1,090.
Required:
Question: What is the bond's nominal yield to call?
Note: Provide support for your rationale.