units $3$ and $4)$

$0\mathrm{.}23.$

$$

$$

Page $16$ of $18$

Question $16(10$ points$)$

Simon bought a $3\mathrm{.}5\%$ bond price at $90\%$ of par that had $37$ years until it matures. $1$ year later the yield to maturity on this bond is $4\mathrm{.}4\%.$ What return did he earn on this bond?

$-3\mathrm{.}90\%$

$1\mathrm{.}10\%$

$-4\mathrm{.}90\%$

$-2\mathrm{.}90\%$

$-7\mathrm{.}90\%$