QUESTION $12$

A zero$-$coupon bond with three years to maturity has a face value of $$1,000.$ You buy the bond today and its yield to maturity right now is $5\%.$

Suppose that you sell the bond exactly one year from today. At that point, the yield to maturity has changed to $3\%.$ What is your holding period

return?

A$.0\mathrm{.}09127$

B$.0\mathrm{.}08127$

C$.0\mathrm{.}09117$

D$.0\mathrm{.}08227$