Current yield in market are as follows: 4- year, U.S. treasury bond, YTM 2.5%. 4-year, A rated corporate bond, YTM 3.5%. 6-year, U.S. treasury bond, YTM 3.00% 6-year, A rated corporate bond, YTM 4.75%. 5-year, U.S. treasury bond, YTM 2.75% Using matrix (relative) pricing, the yield on a 5 year A rated corporate bond is closest to:

Select one:

a. 4.125

b. 3.125

c. 5.125

d. 3.75