You pay $10,000 for a one-year bond with an original value of $10,000 and a single fixed

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Question:

You pay $10,000 for a one-year bond with an original value of $10,000 and a single fixed payment of $800 at the end of the year. You hold the bond until the year is up, but during that time, the market price of the bond falls to $8,000. The interest rate on your investment is

Select one:

A. 10 percent.

B. 80 percent.

C. 100 percent.

D. higher than interest rates on similar bonds at the end of the year.

E. 8 percent.