A two-year bond with par value $1,000 making annual coupon payments of $93 is priced at $1,000.

a.	What is the yield to maturity of the bond? (Round your answer to 1 decimal place.)

Yield to maturity

%

b.	What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.3%, (b) 9.3%, (c) 11.3%?(Do not round intermediate calculations. Round your answers to 2 decimal places.)

Interest Rate	Realized YTM
7.3%	%
9.3%	%
11.3%	%