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Bonds of RCY Corporation with a face value of $1,000 sells for $975, mature in 5 years, and have a 6% coupon rate paid semiannually.

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Bonds of RCY Corporation with a face value of $1,000 sells for $975, mature in 5 years, and have a 6% coupon rate paid semiannually. Calculate the investor's RCY by assuming the following: - Bond sold to yield at 6% and the end of the 3 -year holding period. - Reinvestment rate 5\% APR during this holding period. - PS: state what assumption(s) you need to make in calculating this RCY

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