Langford Co. issued 14-year bonds a year ago at a coupon rate of 8.8%. The bonds make semiannual payments. If the YTM on these bonds is 7.1%, what is the current bond price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Current bond price $ Problem 7-11 Nominal and Real Returns (LO6) An investment offers a 10% total return over the coming year. Bill Morneau thinks the total real return on this investment will be only 6% What does Morneau believe the inflation rate will be over the next year? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Inflation rate % Problem 7-18 Interest Rate Risk (LO2) Bond J is a 3.6% coupon bond. Bond K is a 9.6% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 6.6%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.) If interest rates suddenly rise by 2%, what is the percentage price change of these bonds? Percentage change in price of Bond J Percentage change in price of Bond K % % What if rates suddenly fall by 2% instead? Percentage change in price of Bond J Percentage change in price of Bond K % % Problem 7-19 Bond Yields (LO2) Oak Bay Software has 9.3% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.9% of par. What is the YTM? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) YTM % What is the effective annual yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Effective annual yield % Problem 7-23 Finding the Bond Maturity (LO2) Colwood Corp. has 9.0% coupon bonds making annual payments with a YTM of 8.2%, current market value of $1,057.00. How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Years left to maturity years