Question: Consider a 2 - year bond with a zero coupon rate, a $ 1 , 0 0 0 face value, and a yield to maturity

Consider a 2-year bond with a zero coupon rate, a $1,000 face value, and a yield to maturity of 0.025. Suddenly, the bond is downgraded by the major credit rating agencies, bringing its price down from just over $950 to $800. What is the new yield to maturity of this bond?

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