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L 4. The yield rate on a one year zero-coupon bond is currently 7% and the yield rate on a two year zero coupon bond

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L 4. The yield rate on a one year zero-coupon bond is currently 7% and the yield rate on a two year zero coupon bond is currently 8%. The Treasury plans to issue a two year bond with 9% annual coupons, maturing at $100 par value. Determine the yield-to-maturity of the two year coupon bond. (A) 7.00% (B) 7.52% (C) 7.83% (D) 7.96% (E) 8.00% a. 8.00% b. 7.96% c. 7.52% d. 7.00% e. 7.83% Clear my choice

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