Alex Purchased a $1,000 Par Value Bond One Year Ago

Alex purchased a $1,000 par value bond one year ago at a price of $1,016.At the time of purchase,the bond had 12 years to maturity and a 5 percent,semiannual coupon.Today,the bond has a yield to maturity of 5.25 percent.What is his realized yield as of today?

A) 0.43 percent
B) 0.86 percent
C) 1.19 percent
D) 1.32 percent
E) 2.60 percent