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Business, 27.06.2019 21:10, weasel71

A30-year maturity bond has an 8.5% coupon rate, paid annually. it sells today for $871.17. a 20-year maturity bond has an 8.0% coupon rate, also paid annually. it sells today for $894.50. a bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 9.5% and 15-year maturity bonds will sell at yields of 9.0%. because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 7%a. calculate the annual return for the 30-year maturity bond over the next five years. (do not round intermediate calculations. round your answer to 2 decimal places.) expected rate of return % b. what is the expected return of the 20-year bond. (do not round intermediate calculations. round your answer to 2 decimal places.) expected rate of return

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