Suppose that a portfolio manager is considering investing in a passthrough with 6.5% coupon rate, 290 months remaining to maturity, and an original mortgage balance of $1,000,000. The cash flow yield is 4.413%. The portfolio manager has a 6-month investment horizon and has the following beliefs:

a. for the next six months the prepayment speed will be 200 PSA.

b. the projected cash flow can be reinvested at 40 basis points per month.

c. the passthrough will trade at a yield of 5% at the end of the investment horizon.

d. the projected PSA speed at the end of the investment horizon is 175.

Compute the 6-month total return on both a bond equivalent basis and an effective rate basis.