Question: the answer is D. 8.5% please show how to get this answer thank you 12. You purchased a 6-year annual-interest coupon bond 1 year ago.

the answer is D. 8.5% please show how to get this answer thank you the answer is D. 8.5% please show how to get this answer

12. You purchased a 6-year annual-interest coupon bond 1 year ago. Its coupon interest rate was 6%, and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%, your annual total rate of return on holding the bond for that year would have been approximately A. 5% B. 5.5% C. 7.6% D. 8.5%

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