A corporate bond with a 7.875% coupon, paid semiannually, is currently selling at a price of $986.25. One year from now, you expect the bond market price to be $994. The yield to maturity on this bond is ___________

Select the most appropriate choice to fill in the blank above.

a. 7.9%

b. 9.9%

c. 8.8%

d. None of the other choices

e. 15.8%

f. 4.8%

g. 3.9%