Qu lue: Do points The YTM on a bond is the interest rate you eam on your investment if interest rates don't change. If you actually sell the bond before it matures your realized return is known as the holding period yield (HPY). a. Suppose that today you buy a bond with an annual coupon of 8 percent for $1,170. The bond has 16 years to maturity. What rate of retum do you expect to eam on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) Expected rate of return 6 % b-1. 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. Round your answer to 2 decimal places, e.g., 32.16.) Bond price b-2. What is the HPY on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) HPY Hints References eBook & Resources