Problem:
Anna May's Pizza Co. has a 15-year bond issue outstanding that pays a 9% coupon. The bond is currently priced at $894.60 and has a par value of $1,000. Interest is paid semiannually.
Question: What is the yield to maturity? Show all work and provide all computations.
A. 10.16%
B. 10.13
C. 10.45
D. 8.67
E. 10.40