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? (Do not round intermediate calculations. Enter your answers as a percent to 1 decimal place.)

rate or return

bond 1 __________

bond 2 ___________

b. Does the higer-coupon bond give a higher rate of return? (yes or no)