3-year horizon

10-year bond

face value: $100

5% coupon

initial y-t-m 5.75%

first reinvestment rate 4%

second reinvestment rate 4.2%

y-t-m in three years 5.8%

Except, rather than reinvesting the first coupon at 4% for two years, invest it for one year at 4% and then combine those proceeds with the second coupon to reinvest at 4.2%. Calculate ROR. (Show all work)