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A bond has 1 0 years until maturity, a coupon rate of 9 % , and sells for $ 1 , 0 0 0 .

A bond has 10 years until maturity, a coupon rate of 9%, and sells for $1,000. Interest is paid annually.
a. If the bond has a yield to maturing of 9% one year from now, what will its price be at that time?
b. What will be the rate of return on the bond?
c. If the inflation rate during the year is 3%, what is the real rate of return on the bond?

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