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One bond has a coupon rate of 5 . 4 % , another a coupon rate of 8 . 2 % . Both bonds pay

One bond has a coupon rate of 5.4%, another a coupon rate of 8.2%. Both bonds pay interest annually, have 13-year maturities, and
sell at a yield to maturity of 7.5%.
a. If their yields to maturity next year are still 7.5%, what is the rate of return on each bond?
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.
b. Does the higher-coupon bond give a higher rate of return over this period?
Does the higher-coupon bond give a higher rate of return over this period?
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