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One bond has a coupon rate of 8.0%, another a coupon rate of 9.5%. Both bonds pay interest annually, have 10-year maturities, and sell at
One bond has a coupon rate of 8.0%, another a coupon rate of 9.5%. Both bonds pay interest annually, have 10-year maturities, and sell at a yield to maturity of 9.0%.
a.If their yields to maturity next year are still 9.0%, 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 / Bond 2
Rate of return ? ?
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