Assume that you pay $722.48 for a long-term bond that carries a coupon of 7.8%. Over the course of the next 12 months, interest rates drop sharply. As a result, you sell the bond at a price of $813.08.

a) find the current yield that existed on this bond at the beginning of the year, %. What was it by the end of the one-year holding period?

b) determine the holding period return on this investment.

Thank you!