2-year coupon bond par = 100, coupon rate = 5% %3D %3D (annual compounding) current market price p0 = 98. 1) find ytm (t=0 to 2). (write formula and get app answer) 2) price 1 year from issuance: p1 =...

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Extracted text: 2-year coupon bond par = 100, coupon rate = 5% %3D %3D (annual compounding) current market price p0 = 98. 1) find ytm (t=0 to 2). (write formula and get app answer) 2) price 1 year from issuance: p1 = 99.2, find ytm (t=1 to 2) (this says that one year later the yield has (write formula and changed from the ytm in 1). compute) 3) find the 1st year holding period return for someone who sold the bond at t = 1. (write formula and compute)