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Which answer is correct and why?

A 10-year bond has a 10% annual coupon rate and a yield to maturity of 12%. This bond can be called in 5 years at a call price of $1,050; the bond's par value is $1,000.

Which one of the following statements is most correct?

a. The bond's current yield is greater than 10%.

b. The bond's yield to call is less than 12%.

c. The bond is selling at a price below par.

d. Both choices a and c above are correct.

e. None of the above answers is correct.

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