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A two-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000. a. What is the yield to maturity of
A two-year bond with par value $1,000 making annual coupon payments of $105 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.5%, (b) 10.5%, (c) 12.5%?(Do not round intermediate calculations. Round your answers to 2 decimal places.)
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