You purchased an annual coupon bond two years ago that had 10 years remaining to maturity. The coupon rate is 8% and the par value is $1,000. At the time you purchased the bond, the yield to maturity was 6%.

The market interest rate changed after you purchased the bond and you reinvested your first coupon income at 5.5% per annum. You sold the bond soon after receiving the second coupon payment. At the time of sale, the bonds yield to maturity was to 6.5%. What is your annualised realised compound yield?

a.

4.623%.

b.

-3.106%.

c.

4.118%.

d.

3.095%.

e.

5.254%.