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3.A company has a bond outstanding with a face value of $1000 that reaches maturity in 20 years. The bond certificate indicates that the stated

3.A company has a bond outstanding with a face value of $1000 that reaches maturity in 20 years. The bond certificate indicates that the stated coupon rate for this bond is 7% and that the coupon payments are to be made quarterly.

Assuming that this bond trades for $1213, then the YTM (expressed as an APR) for this bond is closest to:

A.8.2%

B.6.0%

C.6.4%

D.5.3%

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