Suppose that the current spot rate curve (annually compounded) is $1=0.3%, 52=0.6%, 53=1.2%. Assume that one year from now, the spot rate curve will be s'1=0.5%, s'2=1%, s'z=1.9%. Consider a 3-year bond with annual coupon 2%. If you purchase that bond today and hold it for one year, what will be your total return (i.e. consider both price change and coupon)? (nearest 0.01%, and e.g. write 5.02 for 5.02%). Selected Answer: [None Given] Correct Answer: 1.56 + 0.01