Hello all, I have a question that I’m stumped on, could some one please explain to me why the coupon payment is used as semi-annual but the number of periods used remains at 4 instead of 8?

An analyst observes a Widget & Co 7.125%, 4-year semiannual-pay bond trading at 102.347% of par (Par=$1000). The bond is callable at 101 in 2 years. What is the bond’s yield-to-call?

A) 3.167

B) 5.664

C) 6.334

Answer: C

N = 4 FV= 1010 PV= -1023.47 PMT= 35.625 Compute I/Y= 3.167*2= 6.334%

Shouldn’t the N= 8, due to the semi-annual payment?