2-year maturity bond with face value of $1,000 makes annual coupon payments of $118 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is:

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

rate of return?

a) 6%

b)11.8

c)13.8