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At t=0 (Now), you purchase a zero-coupon bond with the following features: Current price of a bond: $987.65; Face value of bond: $1,500; and maturity

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At t=0 (Now), you purchase a zero-coupon bond with the following features: Current price of a bond: $987.65; Face value of bond: $1,500; and maturity of bond: 5 years. Suppose that, in the 2 nd year after you purchased the bond, at time t -2 years, the continuously compounded market interest rate as applicable to your bond decreased by 100 basis points. a) What is your continuously compounded holding period return. if you hold the bond all the way till its maturity? (Type your answer in decimals, not in percentages. For example, if your answer is 1.234%, then type 0.01234 in the text box.)

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