Question: Today you bought a callable bond issued at a yield to maturity of 5 . 5 % . It has 1 0 years to maturity,

Today you bought a callable bond issued at a yield to maturity of 5.5%. It has 10 years to maturity, a coupon rate of 6%, a call price of 106, and the first call date is in 3 years. The yield and coupon follow the convention with semi-annual periods. Which of the following is closest to the yield to call (YTC) on the bond?
Question 7 options:
a)
6.92%
b)
5.85%
c)
6.18%
d)
6.53%

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