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Paul owns investment A and 1 bond B . The total value of his holdings is $ 6 , 4 5 0 . 4 3

Paul owns investment A and 1 bond B. The total value of his holdings is $6,450.43. Investment A is expected to pay annual cash flows to Paul forever with the first annual cash flow expected in 1 year from today. Investment A has an expected return of 11.53 percent. The first cash flow is expected to be $510.00 in 1 year and annual cash flows are expected to increase by 2.04 percent each year forever. Bond B pays semi-annual coupons, matures in 10 years, has a face value of $1,000.00, has a coupon rate of 12.52 percent, and pays its next coupon in 6 months. What is the yield-to-maturity for bond B?
5.26%(plus or minus 2bps)
11.23%(plus or minus 2bps)
11.53%(plus or minus 2bps)
5.97%(plus or minus 2bps)
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