Implied Forward Yield Calculation for Fixed Income Forwards

Consider a fixed income forward contract where a dealer and an investor agree to exchange a notional amount of $10 million in government bonds in 6 months. The current yield to maturity (YTM) on these bonds is 3%, and the dealer quotes a forward price of $10,250,000 for the transaction. Assume that there are no transaction costs or credit risk involved.

If the forward price is correct, what is the implied forward yield for the investor at the time of the forward contract's initiation?