Berry Corp. issued a $1,000 bond with a 14% coupon paid semiannually. It has a yield to maturity of 11%. The bond matures in 15 years. However, it is callable in 10 years with a call premium of one year's interest. What is the bond's yield to call if it is purchased today at a price determined by its yield to maturity?
A) 5.40%
B) 5.56%
C) 8.65%
D) 10.79%
E) 11.13%
Correct Answer:
Verified
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