Consider a three-year bond with face value F=1000, a coupon rate c=8%, and coupon payments paid quarterly. If the bond is currently traded at a discount price B subscript 0 equals 880, what is the yield to maturity if you bought it today and you are planning to hold it till maturity? (keep your answer to four decimal places; that is, write 2.34% as 0.0234) Hint: use the approximation method here.

Select one: a. YTM=13.38% b. YTM=16.47% c. YTM=19.45% d. YTM=15.87%