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Question : You buy a(n) 5.4% coupon, 7-year maturity bond for $946.

You buy a(n) 5.4% coupon, 7-year maturity bond for $946. A year later, the bond price is $1,056.

a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is your rate of return over the year? (Round your answer to 2 decimal places.)