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A government bond matures in 7 years, makes annual coupon payments of 4.8% and offers a yield of 2.8% annually compounded. Assume face value is

A government bond matures in 7 years, makes annual coupon payments of 4.8% and offers a yield of 2.8% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

a. Suppose that one year later the bond still yields 2.8%. What return has the bondholder earned over the 12-month period?

b. Now suppose that the bond yields 1.8% at the end of the year. What return did the bondholder earn in this case?

I know that the rate of return for a is 2.8% I am looking for help on b.

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