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The Yield to Maturity (YTM) on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). Suppose that today you buy a 5.6% annual coupon bond for $930. The bond has 10 years to maturity. What rate of return do you expect to earn on your investment? Two years from now, the YTM on your bond has declined by 1%, and you decide to sell. What price will your bond sell for? What is the HPY on your investment? Compare this yiels to the YTM when you first bought the bond. Why are they different? Rubric:PLEASEUse wording, grammar, spelling and punctuation accurately and correctly (including APA format). Execution is excellent. Use logical sequencing including introduction, transitions between paragraphs, and conclusion to develop main idea(s)Demonstrate an excellent understanding of how to evaluate bonds and how how interest rates affect bonds. Address all of the components.Explain bond investment strategies to achieve organizational goals.Demonstrate an excellent ability to understand,comprehend, and interpret investments strategies/ portfolio management of bonds. 
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    Tutorial # 00504477 Posted By: neil2103 Posted on: 04/03/2017 08:49 PM
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