Suppose your friend is debating purchasing a bond that has a $1,000 par value, 11 years to maturity, and a 5% annual coupon. Your friend would like to determine the yield to maturity if the bond sells for a price of $1,178. What is the yield to maturity for this bond?
a. 1.55%
b. 1.77%
c. 3.07%
d. 4.19%