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(Round the final answers to 2 decimal places.) a. Mary buys an 9.9% annual coupon bond for $1,250 with 19 years left to maturity. What

(Round the final answers to 2 decimal places.)

a. Mary buys an 9.9% annual coupon bond for $1,250 with 19 years left to maturity. What rate of return can she expect to earn on this investment?

b. Two years later, the YTM on this bond declines by 1%, and Mary decides to sell. What price will she be able to get for the bond?

b-1. What is the holding period yield on this investment?

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