An 8 Percent Coupon Municipal Bond Has 15 Years Left

An 8 percent coupon municipal bond has 15 years left to maturity and has a price quote of 102.0.The bond can be called in 6 years.The call premium is one year of coupon payments.Compute the bond's yield to call and determine if the bond will be called.Assume interest payments are paid semi-annually and a par value of $5,000.

A) 4.31 percent; yes, the bond will be called
B) 8.62 percent; yes, the bond will be called
C) 8.62 percent; no, the bond will not be called
D) 11.21 percent; no the bond will not be called