You purchased a bond, that pays an 7.00% coupon annually, 9 years ago for $900. Today these bonds are selling for $1,150. 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 2.30% per annum?

a.9.93% b.6.62% c.7.87% d.9.21% e.8.28%

Why the answer is A not E