20-?Omega Inc. holds a 12-year bond that has a 12 percent coupon rate and a marginal tax rate of 40 percent. It is currently selling for $1,000, which is the bond's face value. If interest is paid semiannually, the bond's yield to maturity is:

Select one:

a. ?equal to 7.2 percent.

b. ?less than 12 percent.

c. ?equal to 12 percent.

d. greater than 12 percent.?

e. ?greater than 16.8 percent.