Q2: (20 marks) A 20-year maturity bond with a nominal value of $1,000, and a 10% coupon rate (paid annually) currently sells at a yield to maturity of 9%. A portfolio manager with a two-year horizon needs to forecast the total return on the bond over the coming two years. In two years, the bond will have an 18-year maturity. The analyst forecasts that two years from now, 18-year bonds will sell at yields to maturity of 8% and that coupon payments can be reinvested in short-term securities over the coming two years at rate of 7%. Calculate the two-year return on the bond