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A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.7%, and sells for $1,130. Interest is

A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.7%, and sells for $1,130. Interest is paid annually. a. If the bond has a yield to maturity of 9.3% 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. 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?

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