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A two-year bond with par value $1,000 making annual coupon payments of $101 is priced at $1,000. Required: a. What is the yield to maturity
A two-year bond with par value $1,000 making annual coupon payments of $101 is priced at $1,000. Required: 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) 8.1%, (b) 10.1%, (c) 12.1%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate Realized YTM 8.1% % 10.1% % 12.1% %
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