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6. Bond Prices and Returns. One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds pay interest annually,

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6. Bond Prices and Returns. One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds pay interest annually, have 10-year maturities, and sell at a yield to maturity of 10%. (LO6-2) a. If their yields to maturity next year are still 10%, what is the rate of return on each bond? b. Does the higher-coupon bond give a higher rate of return over this period?

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