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A 2-year bond with par value $1,000 making annual coupon payments of $85 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 $85 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 5%, (ii) 7%, (iii) 9%? (Round your answers to 2 decimal places.)

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