Problem:
A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a 5.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent.
Required:
Question 1: What would be the total return of the bond in dollars?
Question 2: What would be the total return of the bond in percent?
Explain comprehensively and provide step by step solution.