Horizon Yield: An investor buys a 4y 10% annual coupon bond priced to yield 5%. The investor sells the bond in 2 years once the second coupon payment is received. Assume that rates rise from 5% to 6% immediately after the purchase of the bond. (Be precise to 2 decimals.)

a. What is the purchase price of the bond?

b. Calculate the value of the coupons at the time of the sale of the bond, including reinvestment income on the coupons.

c. What is the sale price of the bond?

d. What is the horizon yield for the investor? (Ignore the % sign, so if your answer is 5.1234%, then enter your answer as 5.1234) (Be precise to 4 decimals.)