MENT 7 BONDS&INTEREST RATES Question 13 (of 13) value: 10.00 points The YTM on a bond actually sell the bond before it matures, your realized return is known as the holding is the interest rate you eam on your investment if interest rates don't change. If you period yield (HPY) that today you buy a bond with an annual coupon of 11 percent for $1,200. The bond has 19 vestment? Assume a par value of a. Suppose years to maturity. What rate of return do you expect to earn on your in $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected rate of return % b1. 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.) Bond price b2. What is the HPY on your investment? (Do not round intermediate calculations. Enter your answer HPY Hints References eBook& Resources Hint#1 Hint#2