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Page 11 20. Three years ago you purchased a bond for $974.69. The bond had three years to maturity, a coupon rate of 8%, a

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Page 11 20. Three years ago you purchased a bond for $974.69. The bond had three years to maturity, a coupon rate of 8%, a face value of $1,000, and it pays annually. Each year you reinvested all coupon interest at the prevailing reinvestment rates shown in the table below. Time Prevailing Reinvestment Rate 0 (purchase time) | 6096 7.2% So .072) 2 3 (maturity date) | 8.2% | Y? |(1,-82)t |-69. 35 6.33 Today is the bond's maturity date. What is your realized compound yield on the bond? (a) 8.97%. (b) 7.96%. (c) 8.23%. (d) 9.13%

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