You use a 5-year Treasury bond and a 5-year investment grade corporate bond to construct a bond portfolio. The yield to maturity of the Treasury bond is 3% and that of the corporate bond is 5%. You invest $500 in the Treasury bond and $1,000 in the corporate bond. The expected annual return of the bond portfolio in the next 5 year period would be _____.

Group of answer choices

3.67%

4%

4.33%

Undetermined because the correlation of the two bonds returns are not known