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Suppose you buy a zero-coupon bond with 5.5 years to maturity at a price of 87.50 percent of par. If you hold it until maturity,

Suppose you buy a zero-coupon bond with 5.5 years to maturity at a price of 87.50 percent of par. If you hold it until maturity, what will be your realized compound yield, expressed in the conventional way as bond equivalent yield with semi-annual compounding?

a. 2.4576% b. 2.4426% c. 2.5974% d. cannot be determined

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