Suppose that an investor has an a four-year investment horizon. This investor is considering buying a 10-year 9% coupon bond for $1050.

1) Compute the yield to maturity of this bond. The investor expects to be able to reinvest the coupon interest payments at an annual rate of 4% and at the end of the planned investment horizon (after four years) the 6-year bond will be selling to offer a yield to maturity of 5%.

2) Compute the total return of this bond using the four steps method.

Present detailed calculation and detailed presentation.