Question: Q 6 ) Suppose that today you buy a ( 7 % ) annual coupon bond for ( $ 1

Q6) Suppose that today you buy a \(7\%\) annual coupon bond for \(\$ 1,045\). The bond has 15 years to maturity. a) What rate of return do you expect to earn on your investment? (3 Points) b) Two years from now, the YTM on your bond has declined by \(1\%\), and you decide to sell. What price will your bond sell for? (3 Points) c) What is the Holding Period Yield (HPY) on your investment? (4 Points - In total 10 Points)
Q 6 ) Suppose that today you buy a \ ( 7 \ % \ )

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