A 12-year bond has a 10 percent semiannual coupon and a face value of $1,000. The bond has a nominal yield to maturity of 7 percent. The bond can be called in five years at a call price of $1,050. What is the bond’s nominal yield to call?
a. 5.29%
b. 5.40%
c. 5.33%
d. 5.76%
e. 4.56%
Answer: C
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