Yield to Maturity Calculation of a Corporate Bond

Very Hard Fixed Income Securities Bond Markets

A corporate bond has a nominal coupon rate of 6%, pays interest semiannually, and has a maturity of 10 years. The bond is currently priced at $1,100.

The yield to maturity (YTM) for this bond is closest to which of the following? Assume that there are no transaction costs, and the bond pays interest at the end of each period.