finance

1. A 6-year Government Bond of Face Value (FV) $ 1000, makes an annual coupon paument of 5%.

It offers a yield of 3%, annually compounded.

Suppose that 1 year later, the Bond still offers a yield of 3%.

What percentage return has the Bondholder earned over the 12-month period?

Do not include % in your answer. Give your answer to 2 decimals,