A 2-year bond with par value $1,000 making annual coupon payments of $80 is priced at $1,000.

Required:

What is the yield to maturity of the bond?

What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 10%, (ii) 12%, (iii) 14%?

A 2-year bond with par value $1,000 making annual coupon payments of $80 is priced at $1,000. Required: a. What is the yield to maturity of the bond? b. What will be the realized compound yield to maturity if the 1 -year interest rate next year turns out to be (i) 10%, (ii) 12%, (iii) 14% ? Complete this question by entering your answers in the tabs below. What will be the realized compound yield to maturity if the 1 -year interest rate next year turns out to be (i) 10%, (ii) 12%, (iii) 14% ? Note: Round your answers to 2 decimal places