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a . The 8 . 1 % , twenty - year bond yields 6 . 1 % . If this yield to maturity remains unchanged,

a. The 8.1%, twenty-year bond yields 6.1%. If this yield to maturity remains unchanged, what will be its price one year hence?In November 2020, Treasury 45/8s of 2042 offered a semiannually compounded yield to maturity of 2.74%. Recognizing that
coupons are paid semiannually, calculate the bond's price. Assume face value is $1,000.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Bond price
Assume annual coupon payments and a face value of $1,000.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. What is the total return to an investor who held the bond over this year?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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