A bond with a face value of $1,000 matures in 9 years and has a 7% semiannual coupon. The bond currently is traded at $920. Which of the following statements is CORRECT?

Select one:

a. The nominal yield to maturity is 4.80% and you would sell each bond for $920 if you think that a fair market interest rate (discount rate) for such bonds is 6.67%.

b. The nominal yield to maturity is 9.59% and you would sell each bond for $920 if you think that a fair market interest rate (discount rate) for such bonds is 10.67%.

c. The nominal yield to maturity is 8.28% and you would sell each bond for $920 if you think that a fair market interest rate (discount rate) for such bonds is 5.59%.

d. The nominal yield to maturity is 8.28% and you would sell each bond for $920 if you think that a fair market interest rate (discount rate) for such bonds is 9.59%.

e. The nominal yield to maturity is 9.59% and you would sell each bond for $920 if you think that a fair market interest rate (discount rate) for such bonds is 8.67%.