Question: A 2 - year bond with par value $ 1 , 0 0 0 making annual coupon payments of $ 1 1 4 is priced

A 2-year bond with par value $1,000 making annual coupon payments of $114 is priced at $1,000.
Required:
What is the yield to maturity of the bond?
What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i)6%,(ii)9%,(iii)12%?

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