Suppose we have a non-callable and default-free bond that has a coupon of 9% per annum, a face value of $8 000, a yield to maturity rate of 15% per annum and a maturity period of 4 years. Suppose we...

Suppose we have a non-callable and default-free bond that has a coupon of 9% per annum, a face value of $8 000, a yield to maturity rate of 15% per annum and a maturity period of 4 years. Suppose we have a client who has a horizon date (HD) of 3 years who purchases the bond. It is also assumed that after purchase the bond’s yield to maturity will decrease to 12% per annum and remain at that level until the horizon date of the client. Determine the realized yield for such a bond investment.