Question: A bond has six years until maturity, a face value of $1,000, a coupon rate of 4%, and the coupons are paid semi-annually. The bond

A bond has six years until maturity, a face value of

A bond has six years until maturity, a face value of $1,000, a coupon rate of 4%, and the coupons are paid semi-annually. The bond currently trades at par. Suppose you plan to hold the bond for two years and then sell it. You believe that you can reinvest the coupons at a rate of 3% and that the YTM for this bond will be 3% in 2 years. What is your expected annualized total return on this bond

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