A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.8%, and sells for $1,120. Interest is paid annually.

a.	If the bond has a yield to maturity of 10.2% 1 year from now, what will its price be at that time?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price

$

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.)

Rate of return

%

c.	If the inflation rate during the year is 3%, what is the annual real 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.)

Real rate of return

%