16. You buy an 11-year $1,000 par value bond today that has a 5% yield and a 5% annual payment coupon. In 3 years promised yields have risen to 6%. Your annual rate of return over the time you were holding the bond is A. 2.93% B. 2.99% C. 4.33% D. 5.00% E. 8.79% a 17. You buy a bond with a $1,000 par today for a price of $875. The bond has 6 years to maturity and makes annual coupon payments of $75 per year. You hold the bond to maturity but you do not reinvest any of your coupons. What was your effective rate of return over the holding period? A. 10.40% B. 9.57% C. 8.78% D. 7.45% 18. If the coupon rate on a bond is 5.75% and the bond is selling at a discount, which of the following is the most likely yield to maturity on the bond? A. 4.50% B. 4.95% C. 5.25% D. 5.75% E. 5.95%