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  3. 9.12 points the ytm on a bond is the interest rate

9.12 points The YTM on a bond is the interest rate you eam on your...

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Finance

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9.12 points The YTM on a bond is the interest rate you eam on your investment if interest rates don't change. If you actualy sell the bond before it matures, your realzed return is known as the holding period yieid (HPY a. Suppose that today you buy an annual coupon bond with a coupon rate of 8 percent for $900. The bond has 9 years to maturity and a par value of $1,000. What rate of return do you expect to eam on your nvestment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. 32.16 Rate of retun Two years from now, the YTM on your bond has dedlined by 1 percentage point, and you decide to sell b. What price will your bond sell for? (Do not round intermediate calculations and round your answer to 2 decimal places,e.g., 32.16) Price 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, 32.16) Holding perod yield

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