Bond YTM and Pricing 12-6. Clancy Submarines, Inc. is offering $1,000 par value bonds for sale. The bonds will mature 10 years from today. The annual coupon interest rate is 12 percent, with payments to be made annually. James Hobson just purchased one bond at the current market price of $1,125. a. Will the YTM of this bond be greater than or less than the coupon interest rate? Answer this part without doing any calculations. b. To the nearest whole percent, what is the YTM of Mr. Hobson's bond? You'll need to crunch some numbers for this part. c. What would the YTM have to be to make the market price of the bond equal to the face value? No number crunching is needed to