Problem $6-16$ Bond Returns $($LO$2,3)$

A bond has $10$ years until maturity, a coupon rate of $8\mathrm{.}6\%,$ and sells for $$1,140.$ Interest is paid annually. $($Assume a face value

of $$1,000.)$

a$.$ If the bond has a yield to maturity of $9\mathrm{.}4\%1$ year from now, what will its price be at that time?

Note: Do not round intermediate calculations. Round your answer to nearest whole number.

Price

b$.$ What will be the rate of return on the bond?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Negative amount should be indicated by a minus sign.

Rate of return

$\%$

c$.$ If the inflation rate during the vear is $3\%,$ what is the real rate of return on the bond?