Find the bond’s price today and 6 months from now after the next coupon is paid.

Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity.

a. Find the bond’s price today and 6 months from now after the next coupon is paid.

b. What is the total (6-month) rate of return on the bond?