A 5-Year, 5% Semi-Annual Coupon Payment Corporate Bond Is Priced

Multiple Choice

A 5-year, 5% semi-annual coupon payment corporate bond is priced at 104.967 per 100 of par value. The bond's yield-to-maturity, quoted on a semi-annual bond basis, is3.897%. An analyst has been asked to convert to a monthly periodicity. under this con-Version, the yield-to-maturity is closest to:

A) 3.87%.
B) 4.95%.
C) 7.67%.