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A $1,000 face value bond, 5% coupon, 5-year maturity is available for purchase today at a price of $852.48. Interest is paid semi-annually. You purchase

A $1,000 face value bond, 5% coupon, 5-year maturity is available for purchase today at a price of $852.48. Interest is paid semi-annually. You purchase the bond and sell it 2 year later for $900? During the year you received 4 interest payments. What is your holding period yield?

a. 11.29%

b. 13.67%

c. 8.48%

d. 12.44%

e. nota

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