If a bond's yield to maturity does not change, the return on the bond each year...

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Finance

If a bond's yield to maturity does not change, the return on thebond each year will be equal to the yield to maturity. Confirm thisfor both a premium and a discount bond using a 4-year 4.4 percentcoupon bond with annual coupon payments and a face value of$1,000.
a. Assume the yield to maturity is 3.4percent.
What is the current value of the bond? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
Bond price today           $
What will the bond value be in one year? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
Bond price in one year           $
What is the rate of return for the first year? (Do notround intermediate calculations. Enter your answer as a percentrounded to 1 decimal place.)
Rate of return            %
b. Assume the yield to maturity is 5.4percent.
What is the current value of the bond? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
Bond price today           $
What will the bond value be in one year? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
Bond price in one year           $
What is the rate of return for the first year? (Do notround intermediate calculations. Enter your answer as a percentrounded to 1 decimal place.)
Rate of return            %

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If a bond's yield to maturity does not change, the return on thebond each year will be equal to the yield to maturity. Confirm thisfor both a premium and a discount bond using a 4-year 4.4 percentcoupon bond with annual coupon payments and a face value of$1,000.a. Assume the yield to maturity is 3.4percent.What is the current value of the bond? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)Bond price today $What will the bond value be in one year? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)Bond price in one year $What is the rate of return for the first year? (Do notround intermediate calculations. Enter your answer as a percentrounded to 1 decimal place.)Rate of return %b. Assume the yield to maturity is 5.4percent.What is the current value of the bond? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)Bond price today $What will the bond value be in one year? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)Bond price in one year $What is the rate of return for the first year? (Do notround intermediate calculations. Enter your answer as a percentrounded to 1 decimal place.)Rate of return %