1. Given a 4-year investment horizon, calculate the Total Return (annualized) for $1,000 face value of the bond in the following scenario:

Coupon: 6% paid annually, 

Initial YTM: 7%, 

Maturity: 8 years, 

Initial Price = 94.0287 (which is 94.0287 percent of par value). 

Coupons are projected to be reinvested at a rate of 4%, and at the end of the 4-year horizon the bond will sell at a YTM of 6%. 

What is the annualized Total Return (often referred to as a holding period return) for this scenario over the investment horizon?