Question: Problem 6-17 Bond Returns (LO2, 3) A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.5%,

Problem 6-17 Bond Returns (LO2, 3) A bond with a face

Problem 6-17 Bond Returns (LO2, 3) A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 8.5%, and sells for $1,150. Interest is paid annually. a. If the bond has a yield to maturity of 9.5% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your anser to nearest whole number.) Price $ 937 b. What will be the annual rate of return on the bond? (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

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