If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4-year 3 percent coupon bond with annual coupon payments and a face value of $1,000.

A. Assume the yield to maturity is 2 percent.

B. Assume the yield to maturity is 4 percent.

If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4-year 3 percent coupon bond with annual coupon payments and a face value of $1,000. a. Assume the yield to maturity is 2 percent. b. Assume the yield to maturity is 4 percent. Assume the yield to maturity is 2 percent. (Do not round intermediate calculations. Enter "Bond price" answers to 2 decimal places and "Rate of return" as a percent rounded to the nearest whole number.) Assume the yield to maturity is 4 percent. (Do not round intermediate calculations. Enter "Bond price" answers to 2 decimal places and "Rate of return" as a percent rounded to the nearest whole number.)