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10.00 points A two-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. What is the yield to

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10.00 points A two-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. 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) 8.6%, (b) 10.6%, (c) 12.6%?(Do not round intermediate 10.6 % calculations. Round your answers to 2 decimal places.) Interest Realized YTM 8.6% 10.6% 12.6% 10.6%

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