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A US bond has a coupon rate of 5.5% and a price in todays market of $1075. It matures in 5 years with a par

A US bond has a coupon rate of 5.5% and a price in todays market of $1075. It matures in 5 years with a par value of $1000. An investor who purchases the bond plans to reinvest the coupons in a savings account paying 1% interest annually. The bonds realized compound yield is closest to:

  • A. 3.54%
  • B. 3.82%
  • C. 3.60%
  • D. 3.84%

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