Bonds of RCY Corporation with a face value of $1,000 sells for $960, mature in 5 years, and have a 7% coupon rate paid semiannually. Calculate the investor's RCY by assuming the following: - Bond sold to yield at 7% and the end of the 3-year holding period. - Reinvestment rate 6% APR during this holding period. - PS: state what assumption(s) you need to make in calculating this RCY. Show your calculations in the space below: Quick Solution a) annual compounding 8.5058% semi-annual compounding 8.3322% b) Briefly explain in the space below why there are potentially two answers to the RCY calculation