What is the yield to maturity of the bond

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A 2-year bond with par value $1,000 making annual coupon payments of $98 is priced at $1,000.

1. What is the yield to maturity of the bond? (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

2. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (a) 8%, (b) 11%, (c) 14%? (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

r Realized YTM 

8  % % 

11  % % 

14  % %

Reference no: EM132013376

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