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17. Bond Returns. A bond has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. (L06-2
17. Bond Returns. A bond has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is paid annually. (L06-2 and L06-3) a. If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time? b. What will be the rate of return on the bond? c. Now assume that interest is paid semiannually. What will be the rate of return on the bond? d. If the inflation rate during the year is 3%, what is the real rate of return on the bond
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