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A two-year bond with par value $1,000 making annual coupon payments of $96 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 $96 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Answer is complete and correct. Yield to maturity 9.6 % b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.6%, (b) 9.6%, (c) 11.6%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Realized YTM Interest Rate 7.6 % 11.45 X % 9.60% 9.6 % 11.6 % 7.80 X %

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