The YTM on a bond is the interest rate you earn on your investment if interest rates dont change. If you sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy an 8 percent semi-annual coupon bond for $1,080. The bond has 10 years to maturity. What rate of return do you expect to earn on your investment if you plan to hold the bond to maturity? b. Three years from now, you expect the YTM on your bond decline by 2 percent, and you will sell the bond at that time. What price will your bond sell for? What is the HPY on your investment?