Tom purchased a bond today, the bond was issued a year ago with a 25-year maturity and has a yield to maturity (YTM) today of 8%. The coupon rate is 10% and coupons are paid annually. The par value is $1,000. Tom is going to hold this bond for 3 years and sell the bond at the end of year 3. The bond's yield to maturity will change to 9% at the time when Tom sells the bond. Assume coupons can be reinvested in short term securities over the next three years at an annual rate of 11% What Is Tom's three-year holding period return of this bond investment? O A 15.856% B.16.789% OC. 17.211% OD 17.8894 O E. None of the above Based on information from (9), which of the following regarding Tom's annual holding period return (HPR) of this bond investment is correct? 1. Tom's annual HPR is 5,64% and there is a capital loss from selling the bond at year 3 II. Tom's annual HPR will be lower than 8% due to a capital loss from selling the bond at year 3 III. Tom's annual HPR will be higher than 8% due to the higher reinvestment rate of 10% IV. Tom's annual HPR Is 5.59% because gains from the 10% reinvestment rate will be largely offset by the capital loss from selling the bond at year 3 A. I only B. ll only OC. I and I only OD. I and IV only