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Suppose you just purchased a bond with 12 years to maturity that pays an annual coupon...

Suppose you just purchased a bond with 12 years to maturity that pays an annual coupon of $36.00 and is selling at par. Calculate the one-year holding period return for each of these two cases:

a. The yield to maturity is 5.50% one year from now. (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

HPR            %

b. The yield to maturity is 2.30% one year from now. (Round your answer to 4 decimal places.)

HPR            %

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