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A bond has a $1,000 par value, 12 years to maturity, and pays a coupon...

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Finance

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A bond has a $1,000 par value, 12 years to maturity, and pays a coupon of 5.25% per year, semiannually. You expect the bond's yield to maturity to decrease to 5.0% per year in three years. If you buy the bond today for $984.75 and sell it in three years, what is the annual return on your investment? OA) 6.26% B) 5.42% OC) 6.36% D) 6.74% E) 6.42%

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