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 %