Question: Problem 6-16 Bond Returns (LO2, 3) A bond has 10 years until maturity, a coupon rate of 8.8%, and sells for $1,120. Interest is paid

Problem 6-16 Bond Returns (LO2, 3) A bond has 10 years until maturity, a coupon rate of 8.8%, and sells for $1,120. Interest is paid annually. (Assume a face value of $1,000.) 0. If the bond has a yleld to maturity of 92%1 year from now, what will its price be at that time? Note: Do not round intermediate calculations, Round your answer to neorest whole number. b. What will be the rate of return on the bond? Note: Do not round intermediote calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicoted by a minus sign. c. If the inflition rate during the year is 3% what is the real rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer os o percent rounded to 2 decimal places. Negative amount. should be indicoted by a minus sign

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