Homage Enterprises has a bond issue outstanding that pays a 3 percent coupon and matures in 15 years. The bonds have a par value of $1,000 and a market price of $876.30. Interest is paid semiannually. What is the yield-to-maturity?

1. 5.00 percent
2. 4.12 percent
3. 6.36 percent
4. 2.50 percent
5. 2.06 percent