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Suppose you just purchased a bond (Face Value =$1,000 ) with 20 years to maturity that pays an annual coupon of $38.00 and is selling

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Suppose you just purchased a bond (Face Value =$1,000 ) with 20 years to maturity that pays an annual coupon of $38.00 and is selling at par. Calculate the one-year holding period return for each of these two cases: Required: a. The yield to maturity is 5.60% one year from now. (Do not round intermediate calculations. Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) b. The yield to maturity is 2.70% one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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