7. You buy an 10-year $1,000 par value bond today that has a 4% yield and a 4% annual payment coupon rate. In 3 years promised yields have risen to 6%. If you decide to sell the bond after 3 years, your annual return would be _____.

A. 3.13% B. 2.89% C. 0.29% D. -1.12% E. -2.31%