Last year, you purchased a $1,000 par value bond with a 7% annual coupon and a 20-year maturity. At the time of the purchase, it had an expected YTM of 7.5%. After receiving the coupon, you sold the bond today for $1005. What is your return rate in one year? (Hint: find out how much did you pay for the bond last year?)

Select one:

a. 2.04%

b. 13.27%

c. 10.64%

d. 9.18%

e. 3.27%