You purchase a 10 year, 1,000 face value bond that has a 6% coupon rate (the coupons are paid semi-annually). The yield to maturity on the bond is 6% per year compounded semi-annually. Five years later you decide to sell the bond for $1,050. What is your average annual rate of return on this investment? Express your answer as a rate per year compounded semi-annually. a) 3.00% b) 3.42% c) 6.47% d) 6.86% e) 7.14%