You buy an 8 year $1000 par value bond that has a 6% yield and a 6% annual payment coupon. In one year the yields in the economy have risen to 7 % and youve decided to sell the bond. Your one year holding period return will be :

a. .61 %

b. -5.39 %

c. 1.28%

d. -3.25%

If the coupon rate of a bond is 4.50% and the bond is selling at a premium, which of the following is the most likely yield to maturity on the bond?

a.4.30 %

B. 4.50%

c. 5.20%

D. 5.50%