An analyst does research about yield to maturity and gathers the following information about a corporate bond paying interest semiannually:
Par value | $1000 |
Maturity | 10 years |
Coupon rate | 6% |
If the bond is currently selling for $980 and expected inflation is 5%, the bond's yield to maturity is closest to:()
A. 3.14%
B. 6.28%
C. 6.47%