Problem:
Annasam Corporation recently issued 10-yer bonds. the bonds have a coupon rate of 6% and pay interest semiannually. Also the bonds are callable in 4 years at a call price equal to 105% of par value. The par value of the bonds is $1000.
Required:
Question: If the yield to maturity is 9% what is the yield to call? (2 part problem using PV and rate)
A. 13.45%
B. 8.33%
C. 10.20%
D. 14.08%
Note: Please show guided help with steps and answer.