A company issues a 10-year, callable bond at par with 8% annual coupon payments. The bond can be called at par in one year after issue or any time after that on a coupon payment date. The call price is $104 per $100 of face value. What is the yield to call if this bond is called in one year?
A) 7%
B) 12%
C) 10%
D) 4%
Correct Answer:
Verified
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