Answered: A $1,000 par value, 1.0% annual coupon…

A $1,000 par value, 1.0% annual coupon with a maturity in 13 years currently sells for $ 875. What is the bonds current yield? What is the bond's yield to maturity (YTM)?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

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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Question

4).

A $1,000 par value, 1.0% annual coupon with a maturity in 13 years
currently sells for $875.
4
What is the bonds current yield?
What is the bond's yield to maturity (YTM)?
Round your percentages to one decimal place (e.g. 9.4%)
Blank # 1
Blank # 2
A/
A/

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