PROBLEM $6(18$ Points$)$

Let's say you purchase an AAA$-$rated, $9\%$ coupon, $20-$year maturity, $$1000$ par value corporate bond today for $$1075.$ You hold it for $5$ years, re$-$invest the seml$-$annual coupons at $5\%$ per year and sell the bond off when investors are offering a yleld of $12\%$ on it$.$ What yield to maturity were you expecting to earn when you first purchased the bond? What was your holding period yleld? Please explain the difference $($if any$).$ Please do the required numerical calculations to substantiate your answer.

ANSWER TO PROBLEM $6$:

$($A$).$ Yield to maturity expected when you first purchased the bond $=$

$($B$).$ Holding period yield $=$