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Large financial institutions are big bond investors and have large bond portfolios. Suppose Hermges Insurance Co. bought corporate bonds with six years to maturity for $87 million, but only plans to hold them for four years. If total par value is $90 million, the coupon covariance between the asset’s returns and market returns All of the above are factors used in the CAPM. about 4.17% about 0.50% about 4.02% about 6.03% about 4.08% poorly; poorly well; poorly poorly; well well; well 28/10/2021, 11:46 PM Page 5 of 11 interest rate is 5 percent (annual interest payments), and the expected required rate of return in 4 years is 4 percent, _____ is Hermges’s expected holding period yield over their investment horizon?