Question: 1) A $1000 face value bond has two years left to maturity, 7.2% coupon rate with annual coupons, and is currently trading at $937. What

1) A $1000 face value bond has two years left to maturity, 7.2% coupon rate with annual coupons, and is currently trading at $937. What is the YTM on this bond? Enter answer in percents, accurate to 2 decimal places.

2). You buy a TIPS at issue at par for $1,000. The bond has a 4.92% annual pay coupon. Inflation turns out to be 3.3%, 3.71%, and 3.06% over the next 3 years. What is the total annual coupon income you will receive in year 3?

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