A) -2.44% B) 3% C) 5% This question has already been posted several times, but this was on a test and the solutions posted had WAY TOO MANY steps. Use as little steps as possible WITHOUT using excel as I cannot use excel during a test.

An investor purchases 3% coupon, 30-year Treasury bonds at a YTM=3%. Interest rates rise to 5% immediately after the bonds are purchased. Compute the realized holding period yield over a 5-year investment horizon assuming that rates remain at 5%