The yield to maturity on a bond is the interest rate you earn on your investment if interest rates don't change. The realized return on a bond is known as the holding period yield (HPY) if you sell the bond before it matures. a. Today, you purchase a bond for $1,140 with an annual coupon rate of 12 percent. The bond has 19 years to maturity and a par value of $1,000. Compute the rate of return that you expect to earn on your bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1.Now assume that two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b- Compute the HPY on your bond? (Do not round intermediate calculations and 2. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. 10.29 % Expected rate of return Bond price $ 1,227.28 b- 1. b- 2. HPY 39.73 %