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Q6) Suppose that today you buy an 7% semi-annual coupon bond for $1,200 a) The bond has 8 years to maturity. What rate of return

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Q6) Suppose that today you buy an 7% semi-annual coupon bond for $1,200 a) The bond has 8 years to maturity. 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 0.5%, and you decide to sell. What price will your bond sell for? (3 Points) c) What is the HPY on your investment? (4 Points)

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