Chapter 6 Question 3 One bond has a coupon rate of 8.0%, another a coupon rate of 9.5%. Both bonds pay interest annually, have 10-year maturities, and sell at a yield to maturity of 9.0%. a. If their yields to maturity next year are still 9.0%, what is the rate of return on each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Rate of Return Bond 1%? Bond 2%? b. Does the higher-coupon bond give a higher rate of return? Yes No