Question: Database Software Inc. (DSI) and US Data Inc. (USD) are in the same risk class. Both companies have bonds outstanding that have 8 years to

Database Software Inc. (DSI) and US Data Inc. (USD) are in the same risk class. Both companies have bonds outstanding that have 8 years to maturity and a coupon rate of 8%. The only difference in these bonds is that DSI bond has a quarterly coupon, while USD bond has an annual coupon payment. The market price of the DSI bond is $890.75.

What is the yield to maturity (YTM) of the DSI bond?

	A.	11.04%
	B.	13.20%
	C.	10.00%
	D.	7.44%
	E.	9.95%
	F.	10.14%
	G.	12.34%
	H.	8.48%

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