Three years ago Icahn spent $1000 to purchase a 12-year, $1000 par-value T-bond with a 1.5% annual coupon. Today the bond's YTM 1%. If Cramer holds this bond to maturity, what internal rate of return will he earn on this investment?

Select one:

a. 0.5%

b. 1.5%

c. 2.5%

d. 3.5%