Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase, it had an expected YTM of 8%.After receiving the coupon, you sold the bond today for $930.What is your return rate in one year?

What is your return rate in one year? (Hint: find out how much did you pay for the bond last year?)

Select one:

a.18.28%

b.5.68%

c.2.75%

d.-2.11%

e.6.64%