What is their yield to call (YTC)?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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Meacham Enterprises' bonds currently sell for $1,240 and have a par value of $1,000. They pay a $136 annual coupon and have a 15-year maturity, but they can be called in 4 years at $1,060.87. What is their yield to call (YTC)?
Group of answer choices
8.14%
8.29%
8.22%
7.75%
7.36%
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