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%