Question: Problem 14-23 A 2-year bond with par value $1,000 making annual coupon payments of $80 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 $80 is priced at $1.000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity % b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be () 10%, () 12%, (1) 14%? (Round your answers to 2 decimal places.) Realized YTM 10% 124
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