The correct answer is (c).
The effective yield corresponding to an interest rate of 12 percent per annum payable half yearly is 12.36%. This is because when interest is compounded, the interest earned on the interest in the first period also earns interest in the second period. This means that the effective yield is always greater than the nominal yield.
To calculate the effective yield, we can use the following formula:
Effective yield = (1 + (Nominal yield / Number of compounding periods per year))^Number of compounding periods per year – 1
In this case, the nominal yield is 12% and the number of compounding periods per year is 2. So, the effective yield is:
Effective yield = (1 + (0.12 / 2))^2 – 1 = 12.36%
The other options are incorrect because they do not take into account the fact that interest is compounded.