See the following and check the relevant PPT Examples if needed. Show your steps.

A $$1,000$ par value bond with $12$ years to maturity pays a coupon rate of $6\%,$ annually. The bond's yield to maturity is $6\mathrm{.}7\%$ per year. You expect the bond's yield to maturity in three years will be $5\mathrm{.}9\%$ per year and you can reinvest the bond's coupon payments over the next three years in short$-$term securities that pay $4\%$ per year. What is the expected annual return over the next three years? Please show all work and do not use excel