It is now January 1, 2013, and you are considering the purchase of an outstanding bond that was issued on January 1, 2012. It has a 7 percent annual coupon and had a 30-year original maturity. (It matures on December 31, 2041) There were 9 years of call protection (until December 31, 2020), after which time it can be called at 110 percent of par, or $1,100. Interest rates have fallen since the bond was issued, and it is now selling at 119 percent of par, or $1,190. 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.	7.00%
	b.	5.78%
	c.	4.16%
	d.	5.09%
	e.	5.65%