Question: a. An 8% , five-year bond yields 6% . If this yield to maturity remains unchanged, what will be its price one year hence? Assume

a. An

8%

, five-year bond yields

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

$1,000

.\ Note: Do not round intermediate calculations. Round your answer to 2 decimal places.\ b. What is the total return to an investor who held the bond over this year?\ Note: Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number.\ \\\\table[[a. Price,],[b. Total return,

%

a. An 8%, five-year bond yields 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 $1,000. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the total return to an investor who held the bond over this year? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number

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