Question: 3. Consider two bonds with the following features. These two bonds have a $1,000 face value, and an annual coupon frequency. An investor buys these

 3. Consider two bonds with the following features. These two bonds

3. Consider two bonds with the following features. These two bonds have a $1,000 face value, and an annual coupon frequency. An investor buys these two bonds and holds them until maturity. Compute the annual return rate over the period, supposing that the yield curve becomes instantaneously flat at a 5.4% level and remains stable at this level for 10 years

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