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A 6 year bond issued today by Elpha, Inc. has a coupon rate of 8%, a required return of 3% and a face value of

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A 6 year bond issued today by Elpha, Inc. has a coupon rate of 8%, a required return of 3% and a face value of $1000. The bond will be sold 2 years from now when interest rates will be 4%. What is the actual rate of return (or holding period return) over this 2 year period? (This will be easier to answer if you've already answered the other two questions regarding the Elpha bond.) 2.70% 3.67% -12.50% O.084% 8.25%

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