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You buy a bond with a $1,000 par value today for a price of $850. The bond has 6 years to maturity and makes annual

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You buy a bond with a $1,000 par value today for a price of $850. The bond has 6 years to maturity and makes annual coupon payments of $70 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your effective EAR over the holding period? Multiple Choice 11.07% 10.49% 7.61% 8.93%

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