3. You purchased a coupon bond one year ago that had 6 years remaining to maturity at that time. The coupon interest rate was 10% and the par value was $1,000. At the time you purchased the bond, the annual yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the annual yield to maturity continued to be 8%, what is your annual total rate of return on holding the bond for that year? Hint: Holding Return=(Sale Price-Purchase Price+Coupon payment/Purchase price You need to find the purchase price of the bond one year ago, and the selling price after receiving the first payment. Make sure to convert coupon payment and yield to maturity to semi-annual numbers. Answer: Purchase Price=1,093.85; Sale Price 1,087.60; Holding Return 4.0%