Today is 15 May 2021. Stphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j₂ = 3.4% p.a. The purchase price was $100.067. The maturity date of this bond is 15 May 2023.

a) Use the bond salesperson's formula to estimate Stphanie's purchase yield. Give your answer in j₂ form, rounded to 3 decimal places.

a.

1.809%

b.

3.365%

c.

1.683%

d.

2.998%