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b You buy a five-year bond that has a 4.00% YTM and a 4.00% coupon (paid annually). In one year, YTM is increased to 5.00%.

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You buy a five-year bond that has a 4.00% YTM and a 4.00% coupon (paid annually). In one year, YTM is increased to 5.00%. What is your holding-period return (HPR)? Consider a bond paying a coupon rate of 11.75% per year semiannually when YTM is 4.7% per half-year. The bond has two years until maturity. Find the bond's price six months from now after the next coupon is paid

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