A 30-year maturity bond has a 7.4% coupon rate. It is paid annually. It sells today for $879.92. A 20-year maturity bond has coupon rate of 6.9%. It is paid annually. It sells today for $888.1. A bond market analyst forecasts that in 5 years, 25-year maturity bonds will sell at yields to maturity of 8.4% and 15-year maturity bonds will sell at yields of 7.9%. Since the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 4.2%. What rate of return does each bond offer over the 5-year period? Complete the missing information under Rate of Return.

Rate of Return

30 year bond __________%

20 year bond __________%