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  3. you purchased a 5-year, semiannual coupon bond six

You purchased a 5-year, semiannual coupon bond six months ago. Its coupon rate was 6%,...

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Accounting

You purchased a 5-year, semiannual coupon bond six months ago. Its coupon 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 bonds yield to maturity had changed to 3%, your annual rate of return on holding the bond for this period would have been approximately __________.

A. 5%

B. 5.5%

C. 6.01%

D. 8.9%

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