A company is investigating the purchase of a bankers acceptance (BA). The

$1,000,000 face value BA has 150 days to maturity and is quoted at 4.05

percent on a discount-basis yield. If the companys marginal tax rate is 25

percent, then the money market yield on the BA is closest to:

A. 3.13%.

B. 3.58%

C. 4.18%.

D. 4.12%