CH A two-year bond with par value $1,000 making annual coupon payments of $90 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 9.01% b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.0%, (b) 9.0%, ( 11.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate 7.0 % 9.0 % 11.0 % Realized YTM % 9.00% % Check my work a. How much of (the zero-coupon bond and (i) the perpetuity will you hold in your portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) % Zero-coupon bond Perpetuity bond % b. How will these fractions change next year if target duration is now twenty four years? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Zero-coupon bond Porpetuity bond