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Treasury bond with exactly six years until maturity

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Ann purchased a treasury bond with exactly six years until maturity, which pays coupon annually. The bond has a par value of $1,000, a 5% annual coupon rate, and a current yield to maturity (YTM) of 6%. After exactly three years, Ann sold the bond to another investor, with the yield to maturity of 4%. She was always able to re-invest all her coupon income at a return of 3%. All rates are annual. What is her holding period return over the 3-year period?

Reference no: EM133305774

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