An investor purchased a 4% coupon, 5-year bond that is priced to offer 6% yield. Assume semi-annual coupon payments

A)Calculate thecurrent yieldandcapital gain yieldof this bond.

B)Assume that the investor reinvested the semi-annual coupons at an annual rate of 5% compounded semi-annually and sold the bond at the 6% yield 2 years later. Calculate the realized annual rate of return on his bond investment over the 2-year horizon