An investor is considering the purchase of a(n) , -year corporate bond that's being priced to yield . She thinks that in a year, this bond will be priced in the market to yield . Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.

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Part 1

The price of the bond today is $__________. (Round to the nearest cent.)