A 5-year, 5% semiannual coupon payment corporate bond is priced at 104.967 per 100 of par value. Th e bond’s yield-to-maturity, quoted on a semiannual bond basis, is 3.897%.

An analyst has been asked to convert to a monthly periodicity. Under this conversion, the yield-to-maturity is closest to:

A . 3.87%.

B . 4.95%.

C . 7.67%.

Th e following information relates to Questions 27–30 A bond with 5 years remaining until maturity is currently trading for 101 per 100 of par value.

Th e bond off ers a 6% coupon rate with interest paid semiannually. Th e bond is fi rst callable in 3 years, and is callable after that date on coupon dates according to the following schedule:

End of Year Call Price 3 102 4 101 5 100