A two-year bond with par value $1,000 making annual coupon payments of $91 is priced at $1,000.

a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.)

YTM =

b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.1%, (b) 9.1%, (c) 11.1%?(Do not round intermediate calculations. Round your answers to 2 decimal places.) (a)

(b)

(c)