A 1-year zero coupon government bond is trading at a yield of 6% while a 2-year zero coupon government bond is trading at a yield to maturity of 7.35%. A 3-year government bond with a coupon rate of 9% is trading at a price R980, the bond has a face value of R1,000 and the coupons are paid once a year.

Assuming the pure expectations theory is correct, determine the realised compound yield for a government bond with the following features; face value=R1,000; price=R855; the coupon rate= 5% (paid once a year) and the time to maturity is 3 years.