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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

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 realized return is known as the holding period yield ( HPY ).( Round the final answers to 2 decimal places .) a . Suppose that today you buy an 9.7% annual coupon bond for $ 1,230 The bond has 19 years to maturity What rate of return do you expect to earn on your investment ? Expected rate of return ?% b -1. Two years from now , the YTM on your bond has declined by 1%, and you decide to sell . What price will your bond sell for ?( Omit $ sign in your response .) Bond price 1,387.66 b -2. What is the HPY on your investment ? HPY ?%

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