Question: You purchased a 4 - year bond with 5 % annual coupons. You hold the bond for 2 years, and sell it immediately after receiving

You purchased a 4-year bond with 5% annual coupons. You hold the bond for 2 years, and sell it immediately after receiving the second coupon payment. When you bought the bond 2 years ago, the yield to maturity was 4%. When you sold the bond, the yield to maturity was 7%. Face value =100. What is the annual rate of return of your investment?
Group of answer choices
1.35%
2.2%
-1.12%
-0.99%

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