A 5-year bond (assuming face value 100) with a coupon of 7%, that pays interest annually, has its next coupon due in 12 months. It yields 5% per annum. Read these three statements.

(i). The price of the bond is 108.66. (ii). The duration of the bond is 4.41 years. (iii). 1% rise in yield can be expected to increase the price by 4.2%.

Which of the following is correct?

a. Only (i) is correct. b. Only (i) and (ii) are correct. c. All are correct. d. None is correct.