Microsoft issued a bond five years ago, which currently has four years left to maturity. The face value of the bond is $1000, but it is currently trading in the secondary market at $1106. Investors receive semi-annual coupon payments, and the coupon rate on the bond is 4.3% p.a. What rate of return do investors require for holding this Microsoft bond?

Group of answer choices

1.56%

8.60%

0.78%

4.30%