Problem 6-19 Rate of Return (LO3)

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is:

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

	Rate of Return
a. 6%		%
b. 8%		%
c. 10%		%