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A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000.  

A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000.
Required:

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) 7.0%, (b) 9.0%, (c) 11.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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