In 2000 Jenson Inc

In 2000 Jenson Inc.issued bonds with an 8 percent coupon rate and a $1,000 face value.The bonds mature on March 1,2025.If an investor purchased one of these bonds on March 1,2012,determine the yield to maturity if the investor paid $1,100 for the bond.

A) 7%
B) The yield to maturity is $900 ($1,000 interest less $100 capital loss) .
C) The yield to maturity must be greater than 8% because the price paid for the bond exceeds the face value.
D) 5.4%