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Business, 21.02.2020 06:05 jesse1384

A 30-year maturity bond has a 6.3% coupon rate, paid annually. It sells today for $868.67. A 20-year maturity bond has 5.8% coupon rate, also paid annually. It sells today for $884.5. A bond market analyst forecasts that in 5 years, 25-year maturity bonds will sell at yields to maturity of 7.3% and 15-year maturity bonds will sell at yields of 6.8%. Because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 5.0%. What rate of return does each bond offer over the 5-year period?(Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Rate of Return
30 year bond %
20 year bond %

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A 30-year maturity bond has a 6.3% coupon rate, paid annually. It sells today for $868.67. A 20-year...
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