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A two-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000. a. What is the yield to maturity of

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A two-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000. a. What is the yield to maturity of the bond? Answer is complete and correct. Yield to maturity 10 % b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8%, (b) 10%, (c) 12%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Interest Rate 8 % 10 % Realized YTM 8.09 % 10.00 % 11.90 % 2 %

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