A Company Issues a Callable (At Par)10-Year, 6% Coupon Bond

Multiple Choice

A company issues a callable (at par) 10-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 worst of this bond when it is released?

A) 1.92%
B) 4.00%
C) 5.47%
D) 0.60%