Consider two bonds, Bond A and Bond B$.$ Both bonds are redeemable at their par value of $1000$ in $N$

years and are priced using the same yield rate. Bond A has $4\mathrm{.}4\%$ semiannual coupons and costs

$776\mathrm{.}88.$ Bond B has $5\mathrm{.}4\%$ semiannual coupons and costs $851\mathrm{.}25.$ Determine the nominal yield rate,

converted semiannually.

$8\mathrm{.}0\%$

$7\mathrm{.}2\%$

$7\mathrm{.}8\%$

$7\mathrm{.}4\%$

$7\mathrm{.}6\%$