Question: Find the total return (current yield plus the capital gains yield) for a, 5.77% annual coupon bond that we bought for $1,025, and has a

Find the total return (current yield plus the capital gains yield) for a, 5.77% annual coupon bond that we bought for $1,025, and has a face value of $1,000. Lets assume we sell it one year later for $995.

A.

1.88%

B.

2.70%

C.

3.22%

D.

4.82%

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