Suppose that today you buy a 9 percent annual coupon bond for $1,140. The bond has 10 years to maturity and you plan to hold it until it matures. What rate of return do you expect to earn on your investment? Write down the equation and then solve it in a spreadsheet program or a financial calculator. If, after two years, you decide to sell this bond when the YTM on it decreases by 1 percent, what price will your bond sell for? What is your annual holding period return if you do not reinvest interest income. What is your annual holding period return if you reinvest coupon income at an annual rate of 6 percent