A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at...

A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at $1,000.

. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.)

Yield to maturity %

b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.2%, (b) 10.2%, (c) 12.2%?(Do not round intermediate calculations.Round your answers to 2 decimal places.)

Interest Rate		Realized YTM
8.2	%	%
10.2	%	%
12.2	%	%

Expert Solution

jeff jeffy answered 2 years ago

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