Two years ago, Synergy Inc. issued a 15-year callable bond with a $1,000 face value and a 12 percent coupon rate of interest (paid semiannually) . The bond cannot be called until five years after issue, at which time the call price will equal $1,120. Currently, the bond is selling for $989.What is the bond's yield to call (YTC) .
A) 7.88%
B) 15.76%
C) 12.45%
D) 12.17%
E) 12.56%
Correct Answer:
Verified
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