LMN Co$.\text{'}$s bonds, issued $1$ year ago, currently sell for $$1,126.$ They have a $7\mathrm{.}25\%$ annual

coupon rate and a $21-$year maturity, a $$1,000$ par value, and are callable in $7$ years at

$$1,060\mathrm{.}00.$ Assume that no costs other than the call premium would be incurred to call and

refund the bonds, and also assume that the yield curve is horizontal, with rates expected to

remain at current levels in the future. Under these conditions, what rate of return should an

investor expect to earn if he or she purchases these bonds, $1$ year after the issue?

$5\mathrm{.}6036\%$

$6\mathrm{.}2842\%$

$4\mathrm{.}7846\%$

$5\mathrm{.}5897\%$

$6\mathrm{.}1390\%$