Question: Consider a five-year, US Treasury bond with a face value of $20,000 and a 1.5% annual coupon rate (with semi-annual coupon payments). The yield-to-maturity of

Consider a five-year, US Treasury bond with a face value of $20,000 and a 1.5% annual coupon rate (with semi-annual coupon payments). The yield-to-maturity of the bond is 1.5% per year, semi-annually compounded. You buy the bond now and plan to sell it after receiving the first coupon payment. If the yield-to-maturity is 6.5% at the time of sale, what is the annualized holding period return you can expect from your bond investment?

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