Question: The yield will be ________. The HPR will be _________. Assume that an investor pays $860 for a long-term bond that carries a coupon of

The yield will be ________. The HPR will be _________. Assume

The yield will be ________.

The HPR will be _________.

Assume that an investor pays $860 for a long-term bond that carries a coupon of 10%. In 3 years, he hopes to sell the issue for $1,060. If his expectations come true, what yield will this investor realize? (Use annual compounding.) What would the holding period return be if he were able to sell the bond (at $1,060) after only 9 months? The yield will be .% (Round to two decimal places.)

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