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(12 points) Ann purchased a treasury bond with exactly six years until maturity, which pays coupon annually. The bond has a par value of $1,000,

(12 points) Ann purchased a treasury bond with exactly six years until maturity, which pays coupon annually. The bond has a par value of $1,000, a 5% annual coupon rate, and a current yield to maturity (YTM) of 6%. After exactly three years Ann sold the bond to another investor, with the yield to maturity of 4%.She was always able to re-invest all her coupon income at a return of 3%. All rates are annual. What is her ANNUALIZED holding period return over the 3-year period?

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