Jenson Bhd. wishes to issue new bonds but is uncertain how the market would set the yield to maturity. The bonds would be 20-year, 7% annual coupon bonds with a RM1,000 par value. The firm has determined that these bonds would sell for RM1,050 each. What is the yield to maturity for these bonds?

a.7.00%

b.8.54%

c.6.54%

d.7.8%