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Bonds issued by XYZ have a par value of $1000, were priced at $1,140.00 six months ago, and are priced at $1,060.00 today. The bonds

Bonds issued by XYZ have a par value of $1000, were priced at $1,140.00 six months ago, and are priced at $1,060.00 today. The bonds pay semi-annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -1.20%, then what is the current yield of the bonds today?

a.

11.64% (plus or minus 0.05 percentage points)

b.

9.54% (plus or minus 0.05 percentage points)

c.

10.58% (plus or minus 0.05 percentage points)

d.

12.51% (plus or minus 0.05 percentage points)

e.

None of the above is within 0.05 percentage points of the correct answer

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