Question 36 Points out of 3.00 Part 2, this example illustrates the concept about price risk and reinvestment risk. Assume you purchase a five-year annual coupon bond that pays $60 each year, has a yield to maturity of 6% and has a face value of $1,000. Suppose the yield for the same bond jumps to 7% one day after your purchase, and remains at 7% till maturity. Yields of comparable bonds are assumed to remain at 7% after the initial jump, and the received annual coupons can be reinvested at 7%. What will be your annualized rate of return if you hold it till maturity? Select one: a. an annualized rate of return of 8.21% for five years ob. an annualized rate of return of 6.11% for five years O c. an annualized rate of return of 6.80% for five years O d. an annualized rate of return of 4.78% for five years e. an annualiz d rate of return of -6.34% for fje years Points out of 3.00 Question 36 Flex question Part 2, this example illustrates the concept about price risk and reinvestment risk. Assume you purchase a five-year annual coupon bond that pays $60 each year, has a yield to maturity of 6% and has a face value of $1,000. Suppose the yield for the same bond jumps to 7% one day after your purchase, and remains at 7% till maturity. Yields of comparable bonds are assumed to remain at 7% after the initial jump, and the received annual coupons can be reinvested at 7%. What will be your annualierd rate of return if you hold it till maturity? Select one: a. an annualized rate of return of 8.21% for five years b. an annualized rate of return of 6.11% for five years O c. an annualized rate of return of 6.80% for five years O d. an annualized rate of return of 4.78% for five years e. an annualiz d rate of return of -6.349 for fe years