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Bond Prices over Time and Bond Return You want to buy a Disney bond with four years until maturity and a coupon rate of 9.75%

Bond Prices over Time and Bond Return

You want to buy a Disney bond with four years until maturity and a coupon rate of 9.75% per year, paid semiannually. FED reports that the market interest rate for similar bonds is only 3.9% per half-year.

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a.)

Find the bond's price today and 6 months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Current Price: ??

Price after 6 months: ??

b.) What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Total Rate of return (% per six months): ??

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