One bond has a coupon rate of 82 another a coupon rate of


One bond has a coupon rate of 8.2%, another a coupon rate of 9.6%. Both bonds pay interest annually, have 13-year maturities, and sell at a yield to maturity of 8.5%. a. If their yields to maturity next year are still 8.5%, 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.)

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Financial Management: One bond has a coupon rate of 82 another a coupon rate of
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