4. (CFA-5) Bonds of Local Corporation with a par value of $1,000 sell for $960, mature in five years, and have a 9% annual coupon rate paid semiannually. (LO 10-6) Version: 3 Page 1 of 3 Last Revised: 7/8/2020 FIN 311: Investments Summer 2020 a. Calculate the: i. Current yield. ii. Yield to maturity iii. Horizon yield (also called realized compound return) for an investor with a three- year holding period and a reinvestment rate of 5% over the period. At the end of three years the 9% coupon bonds with two years remaining will sell to yield 9%. b. Cite one major shortcoming for each of the following fixed-income yield measures: i. Current yield. ii. Yield to maturity. iii. Horizon yield (also called realized compound return)