A bond with 18 years to maturity has an annual interest payment of $35. If the bond sells for its par value, what are the bond's current yield and yield to maturity?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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A bond with 18 years to maturity has an annual interest payment of $35. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places.

CY:______%

YTM:_____%

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