Question #$7$: Rate of Return $[10$ Points$]$

Suppose you purchased a $$1000$ face value coupon bond with $20$ years to maturity for $$948\mathrm{.}25$ today. It pays an annual coupon of $$74$ per year.

$($a$)$ Calculate the current yield. $[2$ Points$]$

$($b$)$ Suppose after one year after purchasing the bond you decide to sell it$.$ Suppose that the yield to maturity is now $6\mathrm{.}5\%.$ What is the rate of return that you earned for holding the bond for one year $[$Hint: You'll need to solve for the price of the bond next year when you sell it$.$ Also $1$ year has passed since you purchased the bond.$][8$ Points$]$