Which of the following best describes the term yield to maturity for an n period bond paying a coupon at rate r semi-annually?

Select one:

a. The EAR results when 1 plus the coupon rate is compounded to reflect that payments are made semi-annually, minus 1.

b. The annualized ratio of the final principal payment divided by current price of the bond.

c. None of the above.

d. The interest rate that equates a bond's present value of future payments to its price.

e. The coupon rate r.