5 2-year coupon bond par = 100, coupon rate = 5% (annual compounding) current market price po = 98. 1) find ytm (t=0 to 2). 2) price 1 year from issuance: p1 = 99.2, find ytm (t=1 to 2) (this says that one year later the yield has changed from the one in 1). 3) find the ist year holding period return for someone who sold the bond at t= 1. -98 5 5+100 1 2 -99.2 5+100 O 1 2 -98 5+99.2 O 1 2