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can you pls answer this question a. Suppose that today you buy a bond with an annual coupon of 7 percent for $1,050. The bond
can you pls answer this question
a. Suppose that today you buy a bond with an annual coupon of 7 percent for $1,050. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment? Assume a par value of $1,000. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. What is the HPY on your investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Step by Step Solution
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