A 3 year coupon bond, issued at $946.54, pays annual coupon and has a face value of $1000. Use the standard amortization table below to answer these questions:

period	coupon	interest revenue	Balance addition	Carrying Balance
0				$946.54
1	$40	?	$16.71	$946.33
2	$40	$57.80	?	Cell E4
3	$40	$58.87	?	$1,000,000

Fill the missing number in E4

a. $941.13 b.$980.12 c. $981.13 d. 986.54 e. $1,005.41

A speculator purchased the bond for $946.54 at issuance, pocketed the first coupon at t=1 and then immediately sold the bond at its actual market price, which was different from $963.33. He managed to earn higher than YTM for his 1-year holding price. What must be the YTM for the buyer who took over the bond from the speculator, assume this buyer holds the bond for the remaining 2 years till maturity? Select the most accurate answer?

A. <7% b. <6% c. 5-6% d. 4% e. >3%