Not yet answered Points out of 1.00 Question 1 P Hag question The example illustrates the concept about price risk and reinvestment risk. Assume you purchase a four-year annual coupon bond that pays $100 each year, has a yield to maturi of 10% and has a face value of $1,000. Suppose the yield for the same bond jumps to 12% one day after your purchase, and remains at 12% till maturity. What will be your return if you bond for only one day? What will be your annualized rate of return if you h it till maturity? hold your Select one: O a. a gain of 6.1% for one day; an annualized rate of return of 8.5% for four years o b. a loss of 6.34% for one day, an annualized rate of return of -6.46% for four years oc. a gain of 6.24% for one day; an annualized rate of return of 8.36% for four years d. a loss of 6.1% for one day, an annualized rate of return of 8.5% for four years e. a loss of 6.1% for one day, an annualized rate of return of 10.26% for four years Next page he left 0:55:26