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You purchased a bond that pays 5.50% coupon annually, 4 years ago for $930. Today these bonds are selling for $1100. If you sold the
You purchased a bond that pays 5.50% coupon annually, 4 years ago for $930. Today these bonds are selling for $1100. If you sold the bond today, what is your annual rate of return on the investment if all coupons you received were reinvested in your bank account at 2.80% per annum?
A. 9.34%
B. 11.21%
C. 9.15%
D. 7.48%
E. 9.54%
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