Problem:
You buy a(n) 5.6% coupon, 8-year maturity bond for $949. A year later, the bond price is $1,064. Assume coupons are paid once a year and the face value is $1,000.
Required:
Question 1: What is the new yield to maturity on the bond (one year from now)?
Question 2: What is your bond's rate of return over the year?
Note: Please provide full description.