Holmia Tech's Non-Callable Bonds Have a Face Value of $1,000

Multiple Choice

Holmia Tech's non-callable bonds have a face value of $1,000, and pay a 10 percent semiannual coupon. In other words, there is a coupon payment of $50 every six months. Each bond has 12 years until maturity, and sells at a price of $1,080. What is the bond's nominal yield to maturity?

A) 8.60%
B) 8.75%
C) 8.90%
D) 9.15%
E) 9.30%