Consider a bond with coupon rate 5.5% maturing 12/31/2008, trading at 100:18 for settlement on 06/30/2008. Assume you purchase the bond on 06/30/2006 and sell it on 12/31/2007. If the semi-annual reinvestment rate of the coupon payment is 3% and the semi-annual yield on 12/31/2007 for this bond is 2%, what is the semi-annual rate of return on your holding of this bond?

	A.	Larger than 3.5%
	B.	Between 2.5% and 3.5%
	C.	Smaller than 1.5%
	D.	Between 1.5% and 2.5%