Exactly five years ago, you purchased a bond with a 3.5% annual coupon, semi-annual coupon payments, $1000 face value and 10 years to maturity. You have held the bond continuously during that time, and just received a semi-annual coupon payment. The market price of the bond is $977.54
a. Over the five years that you held the bond, what is the return that you earned? Express your answer as an annual % rate, under semi-annual compounding.
b. What is the current yield-to-maturity on the bond?
c. If you continue to hold the bond until it matures in five years, what will be the return earned on the bond be over the ten-year life of the bond, expressed as an annual return, compounded semi-annually?