IILIILLO Ivialys Review View Help O Search E E ALI El- AaBbCcDc AaBbCcDc AaBb C AaBbcc AaB 1 Normal 1 No Spac... Heading 1 Heading 2 Title T1 L 1.6 14 15 Paragraph Styles 2:13 4:15 L 7:18:9:110: 1112 13 Yield to maturity (YTM) is the level of yield that will be obtained from investing in bonds, if the interest rate does not change throughout the period. However, if the bonds are sold before maturity, the realization of the proceeds is called the holding period yield (HPY). a. Suppose today you buy a bond at a price of Rp. 9.3 million with a coupon of 5.6% and mature in 10 years. What results do you expect from investing in these bonds? b. Two years from now, the YTM of the bond is down 1%, and you decide to sell it. At what price can the bonds be sold? What is the HPY of your investment? Compare this result with the YTM you expected when buying this bond! Why is there a difference? PT. Hughes is a company that has been experiencing rapid growth lately. This company distributes dividends which are estimated to grow 20% per year for the next 3 (three) years, then will decrease to 5% per year for the future. If the return requested by investors is 12% and the dividend that has just been distributed is Rp. 280, what is the value of the shares ject for a new product