Peter paid $93.40 to purchase a bond on June 1st, 2018; the bond pays a semi-annual coupon with a coupon rate of 3.0% per annum and matures in 10.0 years on June 1st, 2028. One year later, on June 1st, 2019, the bond's yield is unchanged; aka, unchanged yield assumption. Peter can reinvest his received coupons at a rate of 4.0% per annum. If Peter were to sell the bond on June 1st, 2019, which of the following is nearest to his gross realized return over the one year period since he purchased the bond?
Peter paid $93.40 to purchase a bond on June 1st, 2018; the bond pays a semi-annual coupon with a coupon rate of 3.0% per annum and matures in 10.0 years on June 1st, 2028. One year later, on June 1st, 2019, the bond's yield is unchanged; aka, unchanged yield assumption. Peter can reinvest his received coupons at a rate of 4.0% per annum. If Peter were to sell the bond on June 1st, 2019, which of the following is nearest to his gross realized return over the one year period since he purchased the bond? A.-1.09%; B.2.50%; C.3.84%; D.4.11%