With market rates generally low, you are searching for a bondinvestment that pays a higher than usual income. You find one witha coupon rate of 6.5%. It matures in 12 years and is priced rightnow at $1,205.62. If you buy this bond and hold it for the full 12years, what is your annual return on investment?

a) about 4.29%

b) about 2.14%

c) about 5.30%