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You purchase a bond today for $927.50. The bond is a 17-year semiannual coupon bond with coupon rate of 6.5 percent and face value of

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You purchase a bond today for $927.50. The bond is a 17-year semiannual coupon bond with coupon rate of 6.5 percent and face value of $1,000. Just after purchasing the bond, and before receiving the first coupon, the yield to maturity of the bond decreases to 6.0 percent and remains at that level throughout your investment period. Assuming that your investment horizon is 6 years and that you are able to reinvest your coupon payments at the new market rate of 6.0 percent, calculate the realized rate of return of your bond investment. O A. 6.0 percent B.8.2 percent c.9.3 percent D. 7.1 percent

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