Today is 15 November 2021, Sandy just purchased a Treasury bond with a coupon rate of j₂ = 3.105% p.a. and a face value of $100 that matures at par. The purchase price was $98.1. The maturity date of this bond is 15 May 2023.

a) Use linear interpolation to calculate the yield rate. Give your answer in j₂ form, rounded to 3 decimal places. Hint: 1.55% per half year and 2.35% per half year are the lower bound and the upper bound for the linear interpolation

a. 3.900%

b. 4.267%

c. 4.432%

d. 2.216%