Question: A two year bond with par value $1,000 making annual coupon payments of $97 is priced at $1,000. Required: a. What is the yield to
A two year bond with par value $1,000 making annual coupon payments of $97 is priced at $1,000. Required: a. What is the yield to maturity of the bond? (Round your answer to 1 decimol ploce.) b. What will be the realized compound yleld to maturity if the one-year interest rate next year turns out to be (a) 7776 , (b) 97%, (c) 117% ? (Do not round intermediate colculations. Round your answers to 2 decimal ploces.) A two year bond with par value $1,000 making annual coupon payments of $97 is priced at $1,000. Required: a. What is the yield to maturity of the bond? (Round your answer to 1 decimol ploce.) b. What will be the realized compound yleld to maturity if the one-year interest rate next year turns out to be (a) 7776 , (b) 97%, (c) 117% ? (Do not round intermediate colculations. Round your answers to 2 decimal ploces.)
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