The YTM on the bond is the interest rate you earn on your investment if interest...

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Finance

The YTM on the bond is the interest rate you earn on yourinvestment if interest rates don't change. If you actually sell thebond before it matures, your realized return is known as theholding period yield.
a.) You buy a bond with an annual coupon rate of 11 percent for$1,200. This bond has 19 years to maturity. What rate of return doyou expect to earn on your investment? Assume a par value of$1,000.
ANSWER: 8.80%
b-1.) Two years from now, the YTM on your bond has decreased by1 percent, and you decide to sell it. What price will your bondsell for?
b-2.) What is the HPY on your investment?
a.) Expected rate of return 8.80%
b-1.) Bond Price ?????????
b-2.) HPY ???????? %

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The YTM on the bond is the interest rate you earn on yourinvestment if interest rates don't change. If you actually sell thebond before it matures, your realized return is known as theholding period yield.a.) You buy a bond with an annual coupon rate of 11 percent for$1,200. This bond has 19 years to maturity. What rate of return doyou expect to earn on your investment? Assume a par value of$1,000.ANSWER: 8.80%b-1.) Two years from now, the YTM on your bond has decreased by1 percent, and you decide to sell it. What price will your bondsell for?b-2.) What is the HPY on your investment?a.)Expected rate of return8.80%b-1.)Bond Price?????????b-2.)HPY???????? %

a.)	Expected rate of return	8.80%
b-1.)	Bond Price	?????????
b-2.)	HPY	???????? %