Parker's <1980> nonlinear inverse theory for the electrmagnetic sounding problem is converted to a form suitable for analysis of lunar day-side transfer function data by (1) transforming the solution in plane geometry to that in spherical geometry; and (2) transforming the theoretical lunar transfer function in the dipole limit to an apparent resistivity function. The theory is applied to the revised lunar transfer function data set of Hood et al. <1982a> which extends in frequency from 10-5 to 10-3 Hz. On the assumption that an iron-rich lunar core, whether molten or solid, can be represented by a perfect conductor at the minimum sampled frequency, an upper bound of 435 km on the maximum radius of such a core is calculated. This bound is somewhat larger than values of 360-375 km previously estimated from the same data set via forward model calculations because the prior work did not consider all possible mantle conductivity functions.