Suppose you are given the information about the following four bonds that have face value of $100:

• Bond A: The 1-year zero-coupon bond has an YTM of 10%
• Bond B: The 2-year coupon-bond with annual coupon rate of 3% has an YTM of 2%
• Bond C: The 3-year zero-coupon bond has an YTM of 6%
• Bond D: The 4-year coupon-bond with annual coupon rate of 8% has an YTM of 7%

What is the yield for year 1 (y1)? 0.1

What is the yield for year 2 (y2)? 0.019

What is the yield for year 3 (y3)? 0.06

What is the yield for year 4 (y4)? 0.072

What is the forward rate in year 4 (f4)? 0.11

Assume that you buy Bond D today, hold if for 3 years and sell it after receiving the third coupon. What is the annualized expected return if you do not reinvest your coupons and the yield curve does not change?