A two-year bond with par value $1,000 making annual coupon payments of $103 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) 8.3%, (b) 10.3%, (c) 12.3%?(Do not round intermediate calculations. Round your answers to 2 decimal places.)

Interest Rate		Realized YTM
8.3		? %
10.3		? %
12.3		? %