You are a famous bond investor, and you have your eyes on a specific bond. This...

 

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You are a famous bond investor, and you have your eyes on a specific bond. This annual coupon bond has 25 years left to maturity with the face value of $1,000, the coupon rate of 4.50%, and the YTM of 6.50% (as of today). You plan to sell this bond in three years, and you believe that the YTM will be 100 basis points (= 1%) less at the selling time compared to today. If you do not reinvest your coupon payments, what will be your holding period return (HPR)? You are a famous bond investor, and you have your eyes on a specific bond. This annual coupon bond has 25 years left to maturity with the face value of $1,000, the coupon rate of 4.50%, and the YTM of 6.50% (as of today). You plan to sell this bond in three years, and you believe that the YTM will be 100 basis points (= 1%) less at the selling time compared to today. If you do not reinvest your coupon payments, what will be your holding period return (HPR)?