Cybernetics Inc. issued $50 million of 6% coupon three-year bonds with coupons paid at the end of each year. The effective rate at the beginning of Years 1, 2 and 3 was 8%, 5% and 2% respectively. Assume Cybernetics decides to account for the bonds using the amortized cost method. What is the book value of the bonds at the end of Year 2?

	A.	$47.45 million
	B.	$49.07 million
	C.	$50.78 million
	D.	$50.01 million
	E.	$52.34 million