You purchased a 10-year, 6% coupon bond (the bond makes semi-annual payments) last year based upon a discount rate of 6%. One year later the discount rate has fallen to 5.5%. What is your total return on the bond?

a. 6.000%

b. 3.512%

c. 9.512%

d. none of the above

--------------------------------------------------------------------- The answer is C.

Please provide step-by-step calculation with detailed explanation. Don't forget explantiaon, which helps me understand the calcualtion! Thanks.