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The YTM on a 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 (HPY).a.Suppose that today you buy a bond with an annual coupon of 8percent for $1,170. The bond has 16 years to maturity. What rate ofreturn do you expect to earn on your investment? Assume a par valueof $1,000. (Do not round intermediate calculations. Enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.) Expected rate ofreturn ????%b1.Two years from now, the YTM on your bond has declined by 1percent, and you decide to sell. What price will your bond sellfor? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.) Bond price ???$ b2.What is the HPY on yourinvestment? (Do not round intermediate calculations. Enteryour answer as a percent rounded to 2 decimal places, e.g.,32.16.) HPY ???%