1. In 2015, Ruby Ltd issued $100 million of Gold bonds due in July 16, 2016. At the issue date, the yield was 540 basis points (5.4%) above the yield on the Gold bonds due in April, 2017. The price and yield to maturity of the Gold issue at September 30, 2015-2017 was reported as follows:

Price to Maturity:

2015: 15.33%

2016: 16.68%

2017: 19.15%

The assumed yield on the Gold bond for the year 2016 is:

1. 24.55%
2. 22.08%.
3. 23.65%
4. 20.73%