Neo Industries has just issued a callable, $1000 par value, five-year, 7% coupon bond with semiannual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. If the bond is currently trading for $967, then its yield to maturity is closest to:

a.

6,8%

b.

4,8%

c.

3,5%

d.

7,8%

e.

5,6%