A Company Issues a 10-Year,callable Bond at Par with 8

Multiple Choice

A company issues a 10-year,callable bond at par with 8% annual coupon payments.The bond can be called at par in one year after issue or any time after that on a coupon payment date.The call price is $105 per $100 of face value.What is the yield to call if this bond is called in one year?

A) 5%
B) 8%
C) 10%
D) 11%
E) 13%