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 yield to maturity of 4.8%,which is below the yield to call.What is the price of this bond per $100 of face value when it is released?

A) $101.15
B) $109.36
C) $100.00
D) $104.80
E) $95.42