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One bond has a coupon rate of 6.4%, another a coupon rate of 8.2%. Both bonds pay interest annually. have 12-year maturities, and sell at
One bond has a coupon rate of 6.4%, another a coupon rate of 8.2%. Both bonds pay interest annually. have 12-year maturities, and sell at a yield to maturity of 7.0%. If their yields to maturity next year are still 7.0%, 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.) a. Rate of return Bond 1 Bond 2 b. Does the higher-coupon bond give a higher rate of return? O Yes O No
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