A $10,000 30-year bond with semiannual coupons of $300 each was purchased January 1, 1972 (just after payment of the coupon then due) for $12,500.The bond will be redeemed at 110% of par on July 1, 1997 (just after payment of the coupon then due.)

In which of the following ranges is the effective annual yield rate to the purchaser?

(A) Less than 3.0%

(B) 3.0% but less than 3.5%

(C) 3.5% but less than 4.0%

(D) 4.0% but less than 4.5%

(E) 4.5% or more