You want to buy a Disney bond with two years until maturity and a coupon rate of 9.50% per year, paid semiannually. FED reports that the market interest rate for similar bonds is only 3.8% per half-year.
a. Find the bond's price today and 6 months from now after the next coupon is paid.
(Do not round intermediate calculations. Round your answers to 2 decimal places.)
Current price $ Price after 6 months $
b. What is the total rate of return on the bond?
(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total rate of return % per six months.