6. a) Suppose we have a 5-year investment horizon and we consider a 10-year 12% coupon bond with face value of $1,000. The yield to maturity of the 10-year bond right now is 10%. The future required...

Extracted text: 6. a) Suppose we have a 5-year investment horizon and we consider a 10-year 12% coupon bond with face value of $1,000. The yield to maturity of the 10-year bond right now is 10%. The future required yield on the bond 5 years from today is 9%. The bond makes semi-annual coupon payments. Our reinvestment rate for the next 5 years is assumed to be 9%. What is the total return over the investment horizon?