Piper owns a $50,000 savings bond that matures in 8 years when she turns 25. Zelle offered Piper $50,000 to purchase the savings bond a year ago, but Piper correctly declined the offer. Today, one year later, Zelle offers to buy the savings bond $45,000 and Piper accepts. Assuming Piper was correct to decline the offer a year ago and also correct to accept the offer today, how has Piper's annual required return (r) changed over the last year?

1.r was positive, r is now negative 2. r was negative, r is now positive 3. r was positive, is now 0% 4. r was 0%, r is now negative