A $40,000 bond with semi-annual coupon payments at 5.5% compounded semi-annually is redeemable at par in 12 years. Calculate the yield rate if the bond is purchased at 102.5.
Select one:
a. 0.0622 (or 6.22%)
b. 0.0599 (or 5.99%)
c. 0.0681 (or 6.81%)
d. 0.0712 (or 7.12%)
e. 0.0523 (or 5.22%)