A bond with a par value of $100,000 has coupons at the rate of 3% per year, payable semiannually. It will be redeemed at par when it matures a certain number of years hence. It is purchased for a price of $91,825. At this price, the purchaser who holds the bond to maturity will realize a yield equal to a 4% nominal annual rate compounded semiannually.

In which of the following ranges does the number of years to maturity lie?

Possible Answers

A

< 11

B

11 but < 14

C

14 but < 17

D

17 but < 20

E

20