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A 2year bond with par value of $1000 making annual coupon payments of $100 is priced at $1000. What is the yield to maturity of
A 2year bond with par value of $1000 making annual coupon payments of $100 is priced at $1000. What is the yield to maturity of the bond (without any calculation, are you able to answer this question?)? What will be the realized compound yield to maturity if the 1year interest rate next year turns out to be: a) 8%, b) 10%, c) 12%?
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