27. A 20-year bond with a face value (and maturity value) of 1,000 pays semi- annual coupons. The Bondo Corporation purchased this bond on its issue date at a price such that its yield to maturity is 5.2% (a nominal rate, convertible semi-annually). The Bondo Corporation adjusts the bond's book value at each coupon date to maintain a constant rate of return over the life of the bond. During the bond's 5th year, its book value is increased by a total of 5.35. If the Bondo Corporation sells the bond at par (i.e., for its face value) on the bond's 10th anniversary, what yield, convertible semi-annually, will Bondo have earned during the 10 years that it owned the bond? C) 5.6% B) 5.4% D) 5.8% E) 6.0% A) 5.2% 27. A 20-year bond with a face value (and maturity value) of 1,000 pays semi- annual coupons. The Bondo Corporation purchased this bond on its issue date at a price such that its yield to maturity is 5.2% (a nominal rate, convertible semi-annually). The Bondo Corporation adjusts the bond's book value at each coupon date to maintain a constant rate of return over the life of the bond. During the bond's 5th year, its book value is increased by a total of 5.35. If the Bondo Corporation sells the bond at par (i.e., for its face value) on the bond's 10th anniversary, what yield, convertible semi-annually, will Bondo have earned during the 10 years that it owned the bond? C) 5.6% B) 5.4% D) 5.8% E) 6.0% A) 5.2%