Question

a. The twenty-year bond yields 5.6% and has a coupon of 7.6%. If this yield to...

a. The twenty-year bond yields 5.6% and has a coupon of 7.6%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price            $

b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Total return             %

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