Question: A two year bond with the par value $1,000 making annual coupon payment of $100 is priced at $1,000. What is the yield to maturity

A two year bond with the par value $1,000 making annual coupon payment of $100 is priced at $1,000. What is the yield to maturity of the bound? What will be realized compound yield to maturity if the one year interest rate next year turns out to be a) 8% b) 10% c) 12%

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