Consider a 10-year, risk-free bond with a coupon rate of 5% (annual coupons) and a face amount of $1,000. 

a. What is the YTM on the bond if its price is $1,100?

b. What is the annual HPR if you buy the bond for $1,100, hold the bond for 5 years, sell it (immediately after the payment of the time 5 coupon) at a price corresponding to a YTM of 4%, and reinvest the intermediate coupons (over the first 5 years) until time 5 at a rate of 3%?