Short-Answer Question 5 (8 points) On January 1, 2001, Isabella purchased a newly issued 20 year bond, with a 6% coupon paid annually and a par of $2500. At the time market rates were 8.6%. On Dec 31, 2006 rates suddenly dropped to 6%, and then again on Dec 31, 2009 rates dropped to 2.5%. At that time Isabella sold the bond. What was the realized rate of return over the life of this bond? A. What was the original purchase price? Page 9 of 10 1802/125.340 AKLI VerB B. What was the price when Isabella sold it? C. What was the accumulated value of the coupons at the time of sale? D. What was Isabella's realized rate of return? (must be anualized in %, with at least 3 decimal places) A. original purchase price? B. price when sold ? C. accumulated value of the coupons at the time of sale? D. realized rate of return