your feiend has 5 years until she need to take money out of her investments to make a planned expenditure. Right now bonds are promising an 8% return. she buys a 5 year duration bond After she buy the bond interest rates fall to 6% and stay there for the full five years. she reinvest the coupons and earn 6%. she sell the bond after five years.

pick the best suitable option out of these.

Your realized return will be more than the originally promised 8% Your realized return will be less than the originally promised 8% Your realized return will be equal to the originally promised 8% You don't have sufficient information to infer what your realized return will be None of the above