A Company Issues a Callable (At Par)ten-Year,7% Coupon Bond with Annual

A company issues a callable (at par) ten-year,7% coupon bond with annual coupon payments.The bond can be called at par in one year after release or any time after that on a coupon payment date.On release,it has a yield to maturity of 3.1%,which is below the yield to call.What is the price of this bond per $100 of face value when it is released?

A) $103.78
B) $100.00
C) $107.00
D) $96.36
E) $133.10