Consider a 8% coupon rate bond maturing in 2 years has a yield to maturity of 10%. The investor will realize the yield to maturity as annual returns only if the bond is:

A. held to maturity and coupons are reinvested at 10%.

B. coupons are reinvested at 10%, irrespective of when the bond is sold.

C. held to maturity and coupons are reinvested at 8%.

D. sold in a year and coupons are reinvested at 8%.

Consider a 8% coupon rate bond maturing in 2 years has a yield to maturity of 10%. The investor will realize the yield to maturity as annual returns only if the bond is: A. held to maturity and coupons are reinvested at 10%. B. coupons are reinvested at 10%, irrespective of when the bond is sold. C. held to maturity and coupons are reinvested at 8%. D. sold in a year and coupons are reinvested at 8%