Assume that ten years ago you purchased a $1,000 bond for $820. The bond pays 6.75 percent

Question:

Assume that ten years ago you purchased a $1,000 bond for $820. The bond pays 6.75 percent interest and will mature this year.
a. Calculate the current yield on your bond investment at the time of the purchase.
b. Determine the yield to on your bond investment.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...