Last year, Sally purchased a $1,000 face value corporate bond with an 8.7 percent annual coupon rate and a 16-year maturity. At the time of the purchase, it had an expected yield to maturity of 11 percent. If Sally sold the bond today for $799.24, what rate of return would she have earned for the past year?

a. 4.96% b. 3.74% c. 8.70% d. 6.74% e. 7.00%