The outstanding bonds of Workers United Inc. pay an 8 percent coupon and mature in 26 years. The bonds have a par value of $1,000 and are currently trading at 91.4 percent of their par value. Interest is paid semiannually. What is the yield-to-maturity?

1. 7.05 percent
2. 7.60 percent
3. 7.94 percent
4. 8.31 percent
5. 8.85 percent