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You purchase the following Bond: Coupon = 8.0%, paid ANNUALLY (once per year) Face Value = $1,000 Purchase Price = $1,000 Maturity = 5-years =

You purchase the following Bond: Coupon = 8.0%, paid ANNUALLY (once per year) Face Value = $1,000 Purchase Price = $1,000 Maturity = 5-years = You plan on reinvesting all the coupon payments. If interest rates rise to 10.0% right after you purchase the bond, what is the realized return on your investment if you hold the bond until it matures? O 7.77% 4.85% O 8.28% O 6.18% O 9.74%

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