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One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds pay interest annually, have to-year maturities, and seli at

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One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds pay interest annually, have to-year maturities, and seli at a yield to maturity of 10%. a. If their yields to maturity next year are still 10%, 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.) (2) Answer is complete but not entirely correct. b. Does the higher-coupon bond give a higher rate of return over this period? Yes No

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