A Company Issues a Callable (At Par)ten-Year,6% Coupon Bond with Annual

Multiple Choice

A company issues a callable (at par) ten-year,6% coupon bond with annual coupon payments.The bond can be called at par in one year after release or any time after that on a coupon payment date.On release,it has a price of $104 per $100 of face value.What is the yield to call of this bond when it is released?

A) 0.60%
B) 1.50%
C) 1.92%
D) 5.47%
E) 6.00%