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One bond has a coupon rate of 7.8%, another a coupon rate of 9.4%. Both bonds pay interest annually, have 7y ear maturities, and sell
One bond has a coupon rate of 7.8%, another a coupon rate of 9.4%. Both bonds pay interest annually, have 7y ear maturities, and sell at a yleld to maturity of 7.0% a. If their ylelds to maturity next year are still 7.0%, what is the rate of return on each bond? Note: Do not round Intermedlate calculations. Enter your answers as a percent rounded to 1 declmal place. b. Does the higher-coupon bond give a higher rate of return over this perlod
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