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  3. 2. an investor purchases a bond with a tenor of 20

2. An investor purchases a bond with a tenor of 20 years. The bond carries...

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Finance

2. An investor purchases a bond with a tenor of 20 years. The bond carries an annual pay coupon rate of 5.00% with a yield to maturity of 4.722%. The price of the bond is 113.590. Following the third coupon payment, the market rates increases to 6.00%. What is the investors horizon yield if she sells the bond immediately after receiving the:

Eighth coupon (end of year 8)

Twelfth coupon (end of year 12)

Last coupon (holds the bond until maturity)

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