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A two-year bond with par value $1,000 making annual coupon payments of $108 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 $108 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 10.81% b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.8%, (b) 10.8%, (c) 12.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Realized YTM Interest Rate 8.8% 10.8 % 12.8 % 10.80 %

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