Consider an 5.0% coupon bond selling for $960.90 with three years until maturity making annual coupon payments. The interest rates in the next three years will be, with certainty, 1 = 5%, r2 = 7%, and r3 = 8%. Calculate the bond's (a) yield to maturity and (b) realized compound yield. (Round your answers to 2 decimal places.) Yield to maturity Realized compound yield %

Question
Consider an 5.0% coupon bond selling for $960.90 with three years until maturity making annual coupon payments. The interest rates
in the next three years will be, with certainty, 1 = 5%, r2 = 7%, and r3 = 8%. Calculate the bond's (a) yield to maturity and (b) realized
compound yield. (Round your answers to 2 decimal places.)
Yield to maturity
Realized compound yield
%
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Consider an 5.0% coupon bond selling for $960.90 with three years until maturity making annual coupon payments. The interest rates in the next three years will be, with certainty, 1 = 5%, r2 = 7%, and r3 = 8%. Calculate the bond's (a) yield to maturity and (b) realized compound yield. (Round your answers to 2 decimal places.) Yield to maturity Realized compound yield %

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