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A 2-year bond with par value $1,000 making annual coupon payments of $120 is priced at $1,000. a. What is the yield to maturity of
A 2-year bond with par value $1,000 making annual coupon payments of $120 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Answer is complete and correct. Yield to maturity 12.0% b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 7%, (ii) 9%, (iii) 11%? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. r Realized YTM 7% 9% 16.67 X % 15.36 % % 15.46 X % 11%
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