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value: 10.00 points on your investment if interest rates don't change. If you The YTM on a bond is the interest rate you earn actually

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value: 10.00 points on your investment if interest rates don't change. If you The YTM on a bond is the interest rate you earn actually sell the bond before it matures, your realized return is known as the holding period yield (HPY) percent for $1,050. The bond has 19 Assume a par value of $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 a. Suppose that today you buy a bond with an annual coupon of 10 years to maturity. What rate of return do you expect to earn on your investment? decimal places, e.g, 32.16.) Expected rate of return b1. 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 t decimal places, eg, 32.16.) b2. What is the HPY on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) HPY

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