Now assume that you purchase a $5-$year, $$1,000$ face bond with a $3\mathrm{.}5\%$ coupon, paid annually, currently selling with a $4\%$ YTM $($yield to maturity$).$ Immediately after you purchase the bond, the reinvestment rate in the market drops to $3\%.$ What is your realized yield on your bond investment?

Select one:

a$.4\mathrm{.}11\%$

b$.4\mathrm{.}00\%$

c$.3\mathrm{.}93\%$

d$.3\mathrm{.}80\%$

e$.3\mathrm{.}27\%$