Yield to call on a bond with a coupon rate of 8% paid semi-annually, 10 years to maturity, a par value of $1,000 and a selling price of $1,071, callable after 5 years at $1,010 is

A) 3.5%.
B) 6.49%.
C) 7.0%.
D) 8.16%.

Answer: B

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