Hello,

I am having a great deal of trouble solving my homework assignment. I don't have a financial calculator and that seems to be the only method of solving it that I can find available in our textbook.

The question is:

One bond has a coupon rate of 6.6%, another a coupon rate of 8.3%. Both bonds pay interest annually, have 15-year maturities, and sell at a yield to maturity of 8.0%.

a.If their yields to maturity next year are still 8.0%, 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.)

Bond 1 Bond 2

Rate of return % %

b.Does the higher-coupon bond give a higher rate of return over this period?