Today Mike wants to buy a 10-year, 7.5% coupon bond and he will hold it for only one year. The bonds yield today is 8%. Next year Mike expects that one of two outcomes will happen: 1) bond yield goes up to 8.5% with probability 0.3 (30%, that is) or 2) bond yield goes down to 7% with probability 0.7 (70%, that is). Find Mikes rate of return if the bond yield in one year is 8.5%