A Mutt Muffin Manufacturing Corporation bond, which has a $1,000 par value and 7.3% stated annual coupon interest rate (with interest payments received semiannually), currently sells for a price of $968. The bond was issued four years ago with a 30-year life, but it can be called by the issuing firm as early as ten years after the original issue date. If the bond is called, the holder receives a premium of $73, in addition to the par value, at the call date. Which of the five equations shown would you use in computing the bond holder’s YIELD TO CALL?
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