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Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value.

The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,195. What is the bond's nominal yield to call?

Select the correct answer.

a. 7.34% b. 6.83% c. 7.00% d. 7.17% e. 6.66%

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