La Cruise Inc. has a bond issue outstanding that pays an 4.9% coupon and matures in 7 years. The bonds have a par value of $1,000 and a market price of $1,125.88. Interest is paid semiannually. What is the yield to maturity?

a.

2.60%

b.

2.40%

c.

3.50%

d.

2.90%