A two-year bond with par value $1,000 making annual coupon payments of $90 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) 7.0%, (b) 9.0%, (c) 11.0%?(Do not round intermediate calculations.Round your answers to 2 decimal places.)

Interest Rate Realized YTM

7.0% %

9.0% %

11.0% %