An investor purchases a $25 million face amount of a corporate bond with remaining maturity of 30 years for 99.5 (no accured interest). The coupon is 3%. The investor can invest cash at 1.0% annum, compounded semi-annually. The investor expects to sell the corporate bond in 3 years when yields are 3.5%. (face value=100)

a) what is the yield to maturity at time of purchase?

b) What is the future value of the coupon payments and reinvestment earnings at the time of the bond sale?

c) What is the total cash from the bond sale, coupon payments and reinvestment earning at the time of the bond sale?

d) What is the total annualized rate of return, based on semi-annual bond equivalent?