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S. V. Balachandra purchased Premia Inc.'s 15-year, 5 1/8% bonds 3 years ago. He is considering...

S. V. Balachandra purchased Premia Inc.'s 15-year, 5 1/8% bonds 3 years ago. He is considering selling them and noted the current price of the bonds is $102.50 per $100. At this price, the yield to maturity is closest to:

A.

4.6428%.
B.

4.8478%.
C.

4.8879%.
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Answer #1

Answer is

B.

4.8478%

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