. Suppose you buy a 30-year, 7.5% (annual payment) coupon bond for $980 (when its yield to maturity is 7.67%) and you plan to hold it for 20 years. Your forecast is that the bond's yield to maturity will be 8% when it is sold and that the reinvestment rate on the coupons will be 6%. What is the compound rate of return? Price N-30ur N=20 I=90/ Prot=75 = 37.5 Hold 20ur reinvestment rate bolo P I = 7.Sol coupon eandal FV=1000 PV = 980 FV=-1000 ytm on selling 8%