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$).$

a$.$Suppose that today you buy a bond with an annual coupon of$7$percent for $$1,050.$The bond has$17$years to maturity. What rate of return do you expect to earn on your investment? Assume a par value of $$1,000.($Do not round intermediate calculations and enter your answer as a percent rounded to$2$decimal places, e$.$g$.,32\mathrm{.}16.)$ANSWER IN THE SYSTEM IS CORRECT:$6\mathrm{.}51\%$

b$-1.$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$.,32\mathrm{.}16.)$ANSWER IN THE SYSTEM IS CORRECT:$1149\mathrm{.}98$$

b$-2.$What is the HPY on your investment?$($Do not round intermediate calculations and enter your answer as a percent rounded to$2$decimal places, e$.$g$.,32\mathrm{.}16.)$ANSWER IN THE SYSTEM IS INCORRECT:$23\mathrm{.}34\%-22\mathrm{.}86-22\mathrm{.}85-22\mathrm{.}87$PLEASE FIND THIS NUMBER ONLY FOR B$-2$AND CROSSS CHECK THE OTHER CORRECT ANSWERS