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A two-year bond with par value $1,000 making annual coupon payments of $104 is priced at $1,000. Required: a. What is the yield to maturity

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A two-year bond with par value $1,000 making annual coupon payments of $104 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) 8.4 %, (b) 10.4%, (c) 12.4 % ? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate Realized YTM 8.4% 10.4% % 12.4% %

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