# A two-year bond with par value $1,000 making annual coupon payments of $93 is priced at $1,000.

Fantastic news! We've located the answer you've been seeking!

## Question:

A two-year bond with par value $1,000 making annual coupon payments of $93 is priced at $1,000.

a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.)

b.What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.3%, (b) 9.3%, (c) 11.3%?(Do not round intermediate calculations. Round your answers to 2 decimal places.)

Interest Rate | Realized YTM |

7.3% | % |

9.3% | % |

11.3% | % |

**Related Book For**