You buy an 10 percent annual coupon, 15-year maturity bond when its yield to maturity is 11 percent. Three years later, the yield to maturity is 9 percent. What is your annual rate of return over the three year in each of the following situations:

a) All coupons were immediately consumed when received.

b) All coupons were reinvested in your bank account, which pays 2.5 percent interest until the bond is sold.

c) All coupons were reinvested at 15.48 percent until the bond is sold.