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Galt Industries Has Just Issued a Callable,$1000 Par Value,five-Year,6% Coupon

Question 16

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Galt Industries has just issued a callable,$1000 par value,five-year,6% coupon bond with semiannual coupon payments.The bond can be called at par in three years or anytime thereafter on a coupon payment date.If the bond is currently trading for $978.94,then its yield to maturity is closest to:


A) 3.4%.
B) 6.0%.
C) 6.5%.
D) 6.8%.

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