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A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.2%, and sells for $1,180. Interest is
A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.2%, and sells for $1,180. Interest is paid annually. a. If the bond has a yield to maturity of 9.8% 1 year from now, what will its price be at that time? (Do not round Intermediate calculations.) Price b. What wll be the annual rate of return on the bond? (Do not round Intermedlate calculetions. Enter your answer as a percent rounded to 2 declmal places. Negative amount should be Indlcated by a minus slgn.) 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 396, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round Intermediate calculations. Enter yur answer as a percent rounded to 2 declmal places. Negative amount should be Indicated by minus sign.) Real rate of return
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