The YTM on a bond si the interest rate you earn on your investment fi interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holdinz period yield (HPY). a. Suppose that today you buy a bond with an annual coupon rate of 7 percent for $1,050. The bond has 17 years ot maturity. What rate of return do you expect to earn on your investment? Assume a par value of $1,000. b. Two years from now, the YTM on your bond has declined by 1percent, and you decide to sell. What price wil your bond sell for? What is the HPY on your invest- ment? Comparethis yield to the YTM when you first bought the bond. Why are they different?