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 $4\mathrm{.}1$ percent coupon bond with annual coupon payments and a face value of $$1,000.$

a$.$ Assume the yield to maturity is $3\mathrm{.}1$ percent.

b$.$ Assume the yield to maturity is $5\mathrm{.}1$ percent.

Complete this question by entering your answers in the tabs below.

Required $A$

Assume the yield to maturity is $3\mathrm{.}1$ percent.

Note: Do not round intermediate calculations. Enter "Bond price" answers to $2$ decimal places and "Rate of return" as a percent rounded to $1$ decimal place.

$\backslash$table$[[$Bond price today,,$],[$Bond price in one year,,$],[$Rate of return,,$],[,,]$

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 $4\mathrm{.}1$ percent coupon bond with annual coupon payments and a face value of $$1,000.$

a$.$ Assume the yield to maturity is $3\mathrm{.}1$ percent.

b$.$ Assume the yield to maturity is $5\mathrm{.}1$ percent.

Complete this question by entering your answers in the tabs below.

Required B

Assume the yield to maturity is $3\mathrm{.}1$ percent.

Note: Do not round intermediate calculations. Enter "Bond price" answers to $2$ decimal places and "Rate of return" as a percent rounded to $1$ decimal place.

$\backslash$table$[[$Bond price today,$],[$Bond price in one year,$],[$Rate of return,$]]]$

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