What is the rate of return for the 8% bond

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Question: One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds pay coupons semiannually, have 10-year maturities, and sell at a yield to maturity of 10%.

If their yields to maturity next year are still 10%, what is the rate of return for the 8% bond?

Reference no: EM133328084

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