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John buys the following Bond: Coupon =8.0%, paid ANNUALLY (once per year) Face Value =$1,000 Purchase Price =$1,000 Maturity =5-years John plans on reinvesting all

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John buys the following Bond: Coupon =8.0%, paid ANNUALLY (once per year) Face Value =$1,000 Purchase Price =$1,000 Maturity =5-years John plans on reinvesting all the coupon payments. If interest rates fall to 5.0% right after John purchases the bond, what is the realized return on John's investment if John holds the bond until it matures? 5.37% 8.28% 7.60% 6.50% 6.64%

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