A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.9%, and sells for $1,110. Interest is paid annually.

a. If the bond has a yield to maturity of 10.1% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price $   

b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

Rate of return %  

c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?

Slightly greater than your part b answer

Slightly less than your part b answer

d. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

Real rate of return %