One bond has a coupon rate of 7.6%, another a coupon rate of 9.3%. Both bonds have 14-year

One bond has a coupon rate of 7.6%, another a coupon rate of 9.3%. Both bonds have 14-year maturities and sell at a yield to maturity of 8%.

a.	If their yields to maturity next year are still 8%, what is the rate of return on each bond? (Do not round intermediate calculations. Round your answers to 1 decimal place.)

	Rate of Return
Bond 1	%
Bond 2	%

b.	Does the higher coupon bond give a higher rate of return?
	No

Explanation:

Some values below may show as rounded for display purposes, though unrounded numbers should be used for the actual calculations.