A 40-year maturity bond has a 6% coupon rate, paid annually. It sells today for $1,017.42. A 30-year maturity bond has a 5.5% coupon rate, also paid annually. It sells today for $1,029.5. A bond market analyst forecasts that in five years, 35-year maturity bonds will sell at yields to maturity of 7% and that 25-year maturity bonds will sell at yields of 6.5%. Because the yield curve is upward-sloping, the analyst believes that coupons will be invested in short- term securities at a rate of 5%. a. Calculate the expected rate of return of the 40-year bond over the five-year period. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected rate of return % b. What is the expected return of the 30-year bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected rate of return %