Josephine is a French boutique specialising in fashionable garments for young girls. The company has issued a 10-year bond with a 5% coupon rate annually. The bond has a face value of 1,000 and is currently traded at 1,170.60. The yield to maturity of the bond is

a. 10%

b. 3.0%

c. 4.0%

d. 4.5%