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One bond has a coupon rate of 7.2%, another a coupon rate of 9.1%. Both bonds...

One bond has a coupon rate of 7.2%, another a coupon rate of 9.1%. Both bonds pay interest annually, have 8-year maturities, and sell at a yield to maturity of 8.0%.

a. If their yields to maturity next year are still 8.0%, 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% =

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with PVIFA and PVIF formula, let me know, will do that also. Thank you.

jeff jeffy answered 2 years ago
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