An investor purchased a 20-year 5.5% Treasury note at the issue price of 108.5 on June 1, 2021. As the government response to COVID-19 pandemic continued, investors became worried about the U.S. governments ability to service its growing debt burden and sold large quantities of Treasury securities. The decreased demand pushed Treasury prices down. On June 1, 2022, exactly one year after buying the T-note, the investor sold it for 97 after receiving two-coupon payments. What was the yield to maturity when the investor purchased the note? What was the investors realized return, stated as an APR, when she sold the note? LO2

The yield to maturity at purchase is 4.83%, while the rate of return at sale is 5.68%.

The yield to maturity at purchase is 5.50%, while the rate of return at sale is 6.03%.

The yield to maturity at purchase is 2.25%, while the rate of return at sale is 6.03%.

The yield to maturity at purchase is 5.11%, while the rate of return at sale is 15.43%.