The YTM on a bond is the Interest rate you earn on your Investment if Interest rates don't change. If you actually sell the bond before it matures, your reallzed return Is known as the holding period yleld (HPY). a. Suppose that today you buy a bond with an annual coupon rate of 7 percent for $1,090. The bond has 14 years to maturity. What rate of return do you expect to earn on your Investment? Assume a par value of $1,000. (Do not round Intermedlate calculatlons and enter your answer as a percent rounded to 2 declmal places, e.g. 32.16.) b-1.Two years from now, the YTM on your bond has declined by 1 percent, and you declde to sell. What price will your bond sell for? (Do not round Intermedlate calculatlons and round your answer to 2 declmal places, e.g., 32.16.) b- What Is the HPY on your Investment? (Do not round Intermediete calculatlons and 2. enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Expected rate of return b-1. Bond price b-2. HPY 96