Answer: 7.92%.

The correct answer is **C** because the conversion from a semiannual yield to maturity (APR₂) to a quarterly yield to maturity (APR₄) requires the formula: $$(1 + \frac{APR₂}{2})^2 = (1 + \frac{APR₄}{4})^4$$ Substituting the given semiannual yield of 8% (0.08): $$(1 + \frac{0.08}{2})^2 = (1 + \frac{APR₄}{4})^4$$ Solving for APR₄/4 gives 1.98%, and multiplying by 4 for the annualized quarterly yield results in 7.92%. This aligns with the principles of fixed income analysis for converting yields across different compounding periods.

Author: LeetQuiz Editorial Team