Bond price today-six months from now after next coupon

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Consider a bond paying a coupon rate of 11.75% per year semiannually when the market interest rate is only 4.7% per half-year. The bond has two years until maturity.

a. Find the bond's price today and six months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131332807

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