What is the new yield to maturity on the bond

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You buy a(n) 7% coupon, 9-year maturity bond for $970. A year later, the bond price is $1,120. Assume coupons are paid once a year and the face value is $1,000.

a. What is the new yield to maturity on the bond (one year from now)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to maturity               % 

b. What is your bond's rate of return over the year? (Round your answer to 2 decimal places.)

Rate of return   %

Reference no: EM13917372

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