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Business, 29.11.2019 03:31 iamasia06

Atwo-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000.

a. what is the yield to maturity of the bond? (round your answer to 1 decimal place.)

b. what will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.9%, (b) 9.9%, (c) 11.9%? (do not round intermediate calculations. round your answers to 2 decimal places.)

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Atwo-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000.
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