Check my work 8 10 poi A 40-year maturity bond has a 8% coupon rate, paid annually. It sells today for $1,06742. A 30-year maturity bond has a 7.5% coupon rate, also paid annually. It sells today for $1,079.5. A bond market analyst forecasts that in five years, 35-year maturity bonds will sell at ylelds to maturity of 9% and that 25-year maturity bonds will sell at yields of 8.5%. Because the yield curve is upward-sloping the analyst believes that coupons will be invested in short-term securities at a rate of 7%. a. Calculate the expected rate of return of the 40-year bond over the five-year period. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) eBook Expected rate of return b. What is the expected return of the 30-year bond? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Check my work 8 a. Calculate the expected rate of return of the 40-year bond over the five-year period. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Expected rate of relum % 10 points BOOK Print References b. What is the expected return of the 30-year bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected rate of return