Question: 7 value: 0.90 points A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000. a. What is the

7 value: 0.90 points A two-year bond with par value $1,000

7 value: 0.90 points 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 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%, (c) 11.0%?(Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate dYIH 7.0% 9.0% 11 0%

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