1. (Yield to maturity). The market price is $850 for a 15-year bond ($1000 per value) that pays 12% annual interest, but makes interest payments on a semiannual basis (6% semiannually). What is the bond's yield to maturity?
The bonds yield to maturity is______%
2. A 3-year treasury security with a maturity risk premium of 0.2% yields 5.2%. If a 2-year treasury security with a maturity risk premium of 0.1% yields 5.0%, what is the expected 1-year treasury yield two years from today?