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3. Given a 6-year investment horizon, calculate the Total Return for $1,000 face value of the bond (semiannual pay) in the following scenario: Coupon: 7%,

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3. Given a 6-year investment horizon, calculate the Total Return for $1,000 face value of the bond (semiannual pay) in the following scenario: Coupon: 7%, Initial YTM: 9%, Maturity: 10 years, Initial Price = 869.92, Coupons are projected to be reinvested at a rate of 10%, and at the end of the 6-year horizon the bond will sell at a YTM of 8%. What is the Total Return for this scenario over the investment horizon? a) 5.78% b) 4.78% c) 9.56% d) 8.52%

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