As a bond fund manager, you are considering corporate bonds issued by Changing Universe (CU). Each CU bond is a 4-year bond with a par value of $1 million. Its interest payments are based on the following schedule: $40,000 in year 1, $60,000 in year 2, $80,000 in year 3, and $100,000 in year 4. You estimate CU's current interest rate is 8%.One year later, the yield declines to 7%, and you decide to sell your bond. What is your holding period return?

A. 6.6%

B. 4.3%

C. 10.3%

D. 8.5%

As a bond fund manager, you are considering 10-year corporate bonds issued by Mellon Bank (MB). Each MB bond has a $1,000 par value with 8% annual coupon rate. The coupons are paid semi-annually. The estimated rate of return on MB bond is 10%. One year later, the yield increases to 11%. What is the current yield of the bond?

O A. 9.62%

O B. 3.35%

O C. 6.78%

O D. 4.80%