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A 40-year bond pays an annual coupon of $8,156. It is selling at a par value of $100,000. The bond's initial yield to maturity is

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A 40-year bond pays an annual coupon of $8,156. It is selling at a par value of $100,000. The bond's initial yield to maturity is 8.156%. By the end of the first year the bond's yield to maturity rises to 8.5%. What is the one-year holding-period return? 2.667% 8.000% 8.156% 4.277% 8.600%

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