Question: Problem 14-23 A 2-year bond with par value $1,000 making annual coupon payments of $122 is priced at $1,000. a. What is the yield to
Problem 14-23 A 2-year bond with par value $1,000 making annual coupon payments of $122 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Answer is complete but not entirely correct. Yield to maturity 10.1 % b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be ( 8%, (11) 9%, () 10%? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Realized YTM 8% 9% 10% 10.10 10.60 X 10.10 %
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