Boyd Advertising Has Bonds Outstanding That Have a 9 Percent

Multiple Choice

Boyd Advertising has bonds outstanding that have a 9 percent annual coupon and a face value of $1,000. The bonds will mature in 10 years, although they can be called before maturity at a call price of $1,050. The bonds have a yield to call of 6.5 percent and a yield to maturity of 7.4 percent. If interest rates remain at their current level, how long until these bonds may first be called?

A) 3.16 years
B) 3.45 years
C) 3.62 years
D) 3.79 years
E) 4.02 years