Exactly three years ago, you purchased a $1,000 face value bond for $1,211.16. The coupon

rate was 6.5 percent with interest paid semiannually. Today, you sold that bond for $1,089.54.

What was your rate of return for the 3-year period, or holding period yield, on this investment?

A.

6.06%

B.

7.19%

C.

6.24%

D.

6.38%

E.

6.74%