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Consider a 2-year coupon bond with a $1000 face value and a 10% coupon rate, its current price is $960, and its price is expected

Consider a 2-year coupon bond with a $1000 face value and a 10% coupon rate, its current price is $960, and its price is expected to increase to $980 next year. a. Calculate the bonds yield to maturity. If the the annualized expected rate of inflation over the life of the bond is 8%, what is the real interest rate of this bond? b. Calculate the current yield, the capital gain and the rate of return if the bond holder plans to sell it at the end of the 1st year? SOLVE WITHOUT EXCEL

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