McCue Inc.'s bonds currently sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050.
Calculate the yield-to-call (YTC) for this bond.
A. 7.35%
B. 7.02%
C. 6.81%
D. 6.35%