Carrie’s Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of each bond is $1,000, and the bond sells for $890. a. What is the bond’s coupon rate? b. What is the current yield? c. What is the yield to maturity?

Intermediate Financial Management (MindTap Course List)
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ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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Chapter4: Bond Valuation
Section: Chapter Questions
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Carrie’s Clothes, Inc. has a five-year bond outstanding that pays $60 annually. The face value of each bond is $1,000, and the bond sells for $890.

a. What is the bond’s coupon rate?
b. What is the current yield?
c. What is the yield to maturity?

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