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A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.7%, and sells for $1,130. Interest is

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A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.7%, and sells for $1,130. Interest is paid annually. a. If the bond has a yield to maturity of 10.3% 1 year from now, what will its price be at that time? (Do not round Intermediate calculations. Round your anser to nearest whole number.) Answer is complete and correct. Price $ 852 b. What will be the annual rate of return on the bond? (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.) Answer is complete but not entirely correct. Rate of return 5.94 c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond? Slightly greater than your part b answer Slightly less than your part b answer d. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be Indicated by a minus slgn.) Answer is complete but not entirely correct. Real rate of return 2.85 % Consider three bonds with 6.00% coupon rates, all making annual coupon payments and all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has a maturity of 8 years, and the long- term bond has a maturity of 30 years. e. What will be the price of the 8-year bond if its yield decreases to 5.00%? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Bond price $ 106.43 f. What will be the price of the 30-year bond if its yield decreases to 5.00%? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Bond price $ 115.37

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