A bond has 10 years until maturity, a coupon rate of 7.1%, and sells for $1,190. Interest is paid annually. (Assume a face value of $1,000.)

1. If the bond has a yield to maturity of 10.9% 1 year from now, what will its price be at that time?

   Note: Do not round intermediate calculations. Round your answer to nearest whole number.

2. What will be the rate of return on the bond?

   Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.

3. If the inflation rate during the year is 3%, what is the real rate of return on the bond?

****PLEASE USE EXCEL FUNCTIONS TO SOLVE THE VARIOUS PARTS.