A bond with a face value of $1,000 matures in 9 years and has a 7% semiannual coupon. The bond currently sells for $846.

You would pay $846 for each bond if you think that a "fair" market interest rate (discount rate) for such bonds is ____.(hint: find out what is the nominal yield to maturity first)

a.15.60%

b.10.24%

c.11.28%

d.8.67%

e.12.53%

how to calculate it?