Consider a fixed-rate bond with exactly five years remaining until maturity, a par value of $1,000 per unit, and a coupon rate of 3% with annual...

Consider a fixed-rate bond with exactly five years remaining until maturity, a par value of $1,000 per unit, and a coupon rate of 3% with annual payments. At the end of the third year, the investor sold the bond at a price of $981,14. Calculate the current annual return of the investment, knowing that during the holding period the interest payments were reinvested at an interest rate of 3,5%. a. 3% b. 3,02% c. 7,43% d. None of the previous answers is correct