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Question: Robert purchases a 1,000 par value twelve-year bond with 9% semiannual coupons for 992. He is able to reinvest his coupon payments at a

Question: Robert purchases a 1,000 par value twelve-year bond with 9% semiannual coupons for 992. He is able to reinvest his coupon payments at a nominal rate of 6% convertible semiannually. Calculate his nominal annual yield rate convertible semiannually over the twelve-year period.
Possible Answers:
A. 7.85%
B. 8.02%
C. 8.23%
D. 8.84%
E. 9.2%

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