1. It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2009. It has a 10 percent annual coupon and had a 30-year original maturity. (It matures on December 31, 2038.) There were 9 years of call protection (until December 31, 2017), after which time it can be called at 109.5 percent of par, or $1,095. Interest rates have increased since the bond was issued, and it is now selling at 97 percent of par, or $970. If you bought this bond, what rate of return would you probably earn, assuming you hold the bonds until they either mature or are called?

   	a.	10.81%
   	b.	12.32%
   	c.	10.42%
   	d.	10.34%
   	e.	10.00%