One bond has a coupon rate of 7.0%, another a coupon rate of 8.5%. Both bonds pay interest annually, have 11-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? (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)

Bond 1 rate of return?

Bond 2 Rate of return?