13.Three years ago, Alex bought a 10-year, 4% coupon bond at a 5% discount and he sold the bond today. He had reinvested all the coupons received during the three years at an APR of 8%. The yield to maturity of the bond today is 6.0%, and the bond pays interest semi-annually. The face value of the bond is $1,000. What was the effective annual rate of return (EAR) on her investment? A) 2.39% B) 2.50% C) 2.55% D) 6.99% E) 13.98%

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