Q 5.28. The annual interest rate from year t to year t+1 is t+1 =5% +0.3% t (e.g., the rate of return from year 5 to year 6 is 5% +0.3%.5= 6.5%). 1. What is the holding rate of return of a ten-year in- vestment today? 2. What is the annualized interest rate of this invest- ment?