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A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually.

A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. If the current market price is $50, what is the capital gain yield of this bond over the next year?

A) 0.2%

B) 1.85%

C) 2.58%

D) 3.42%

E) 3.50%

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