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Page 5 of (4) 10 marks Suppose that today you buy an 6% semi-annual coupon bond for $1,106. The bond has 9 years to maturity.

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Page 5 of (4) 10 marks Suppose that today you buy an 6% semi-annual coupon bond for $1,106. The bond has 9 years to maturity. a) What rate of return do you expect to earn on your investment? b) Two years from now, the YTM on your bond has declined by 0.5%, and you decide to sell. What price will your bond sell for? hs c) What is the HPR on your investment

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