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8. A bond increases in price from R963.80 to R1,380.50 and pays a coupon of R21.00 at the end of each year for two years.

8. A bond increases in price from R963.80 to R1,380.50 and pays a coupon of R21.00 at the end of each year for two years. Assuming that the coupon is reinvested at an annual rate of 10%, calculate is the compound annual rate of return on the investment. (Approximately) a. 1.22% b. 21.56% C. 19.68% d. 47.81% e. None of the above

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