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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

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?

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

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