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Suppose that you purchase at par a $1,0004-year bond with an annual 5.6% coupon rate. Yields on comparable bonds are 5.6%. You expect that, two

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Suppose that you purchase at par a $1,0004-year bond with an annual 5.6% coupon rate. Yields on comparable bonds are 5.6%. You expect that, two years from now, yields on comparable bonds will have changed to 7.2%. Compute the expected sales price of the bond at the end of the second year. Use no symbols, commas, or formatting, and round your anwer to 2 decimals. Your Answer: 984 Question 3 You have just purchased at par a three-year bond with a face value of $100,000 and an annual coupon rate of 4.0%. You expect to sell the bond at the end of the 1 st year for $102217. What is your expected holding period yield of the bond? Your Answer: 6.41

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