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A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. 1. What is the yield to maturity of
A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. 1. What is the yield to maturity of the bond? (Round your answer to 1 decimal place Omit the "%" sign in your response.) Yield to maturity 2. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (a) 10%, (b) 12%, (c) 14%? (Round your answers to 2 decimal places. Omit the "%" sign in your response.) Realized YTM r 10% 12% 14%
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