An analyst finds that the semiannual interest rate that equates the present value of the bonds cash flow to its current market price is 3.85%. Consider the following possible alternatives: I. The bond equivalent yield on this security is 7.7%; II. The effective annual yield on the bond is 7.85%.; III. The bonds yield-to-maturity is 7.7%.; IV. The bonds horizon return is 8.25%. Which of these alternatives are true?

Select one:

a. I and II only

b. IV only

c. I, II, and III only

d. III only