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Sharon Rock bought a semi - annual coupon bond today for 9 8 . The bond has a coupon rate of 4 percent, and ten

Sharon Rock bought a semi-annual coupon
bond today for 98. The bond has a coupon rate
of 4 percent, and ten years to maturity. Sharon
expects to sell the bond in five years, when the
yields are expected to be 6 percent. She also
expects to be able to reinvest the coupons from
this bond at 5 percent per year.
What is Sharons expected horizon yield on her
bond investment?

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