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A 30-year maturity bond has a 8.9% coupon rate, paid annually. It sells today for $883.67. A 20-year maturity bond has a 8.4% coupon rate,

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A 30-year maturity bond has a 8.9% coupon rate, paid annually. It sells today for $883.67. A 20-year maturity bond has a 8.4% coupon rate, also paid annually. It sells today for $885.5. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 9.9% and 15-year maturity bonds will sell at yields of 9.4%. Because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 5.3%. points a. Calculate the annualized) expected rate of return of the 30-year bond over the 5-year period. (Round your answer to 2 decimal places.) eBook 30-year bond % Print References b. What is the (annualized) expected return of the 20-year bond? (Round your answer to 2 decimal places.) 20-year bond - %

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