2. One year from now the bond will have 11 years until maturity. Assume market interest rates remain at 7%.

Given this:

d. What will be the bonds price one year from now?

e. What will be the current yield one year from now?

f.If you purchased the bond at the price in (a)(1238.28) and sold the bond at the price in (d) what would be your capital gain (or loss) once you sold? What would be your annualized holding period return(HPR)? (Remember that the HPR accounts for any coupon income earned during the holding period as well as the capital gain or loss that you incurred)