A $150,000, 7.5% bond with semi-annual coupons redeemable at par is bought 14 years before maturity at 88. What was the approximate yield rate?

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A $150,000, 7.5% bond with semi-annual coupons redeemable at par is bought 14 years before maturity at 88. What was the approximate yield rate?

Select one:

a. 0.0889 (or 8.89%)

b. 0.0789 (or 7.89%)

c. 0.0869 (or 8.69%)

d. None of these answers

e. 0.0902 (or 9.03%)