Problem:
Sadik Inc.'s bonds currently sell for $1,289.00 and have a par value of $1000. They pay a $105.00 annual coupon and have a 12-year maturity, but they can be called in 8 years at $1,307.00.
Required:
Question: What is their yield to call?
Note: Please provide equation and explain comprehensively and give step by step solution.