Bonds of Francesca Corporation with a par value of $$1,000$ sell for $$960,$ mature in five years, and have a $7\%$ annual coupon rate paid semiannually. Do not round intermediate calculations. Round your answers to two decimal places. Calculate:

Problem $12-08$

a$.$ current yield.

$\%$ annually

b$.$ yield to maturity, to the nearest basis point.

$\%$ annually

$\%$ annuallya. Current yield. $\%$annually

b$.$ yield to maturity, to the nearest basis point $\%$ annually

c$.$ horizon yield $($or realized return$)$ for an investor with a three$-$year holding period and a reinvestment rate of $6\%$ over the period. At the end of three years, the $7\%$ coupon bonds with two years remaining will sell to yield $7\%.\%$annually