Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Five Rivers flotation expense on the new bonds will be $50 per bond. Crandal's marginal tax rate is 35%. What is theyield to maturityon the newly-issued bonds? (Hint: The YTM is the return that the investor expects to earn if he/she holds the bond to maturity, i.e. it represents the investor's rate of return)

Select one: a. 9.82% b. 8.17% c. 7.99% d. 6.95%