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12. Today an investors buys a coupon bond with maturity of 8 years for a price of 88 which pays annual coupons of 2.9. The

12. Today an investors buys a coupon bond with maturity of 8 years for a price of 88 which pays annual coupons of 2.9. The YTM of the bond is 4.74 percent. In 2 years from now, the YTM on your bond has declined by 2 percent and the investor decides to sell the bond. What is the annualized holding period return for this investment.

13.Why is the YTM (the total return anticipated on a bond) in the previous question different from the annualized holding period return?

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