Ryan Purchased a Bond for $980 at the Beginning of 2016

Multiple Choice

Ryan purchased a bond for $980 at the beginning of 2016. He received annual interest payments of $55 at the end of each year through 2020 when the bond was redeemed at its face value of $1,000. Compute the yield (internal rate of return) Ryan earned on his bond purchase.

A) 5.50%
B) 5.61%
C) 5.97%
D) 0.34%