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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 an annualcoupon bond with a coupon rate of 8.1 percent for $880. The bondhas 9 years to maturity and a par value of $1,000. What rate ofreturn do you expect to earn on your investment? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.) Rate of return % Twoyears from now, the YTM on your bond has declined by 1 percentagepoint, and you decide to sell. b. What price will your bond sellfor? (Do not round intermediate calculations and round your answerto 2 decimal places, e.g., 32.16.) Price $ What is the HPY on yourinvestment? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)Holding period yield %