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You have bought q 30- year 2% coupon annual-pay bond at a price of 101.27%. If...

You have bought q 30- year 2% coupon annual-pay bond at a price of 101.27%. If the yield decreases by 50 basis points on your bond over the next year, what are your holding period returns for that year? Remeber to include both the coupon and the change in price in your calculations.

A) -2.67%

B) 2.50%

C) 11.42%

D) 13.66%

E) None of the above

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