For each of the following YTM figures, calculate the price and current yield for a two-year, 7-percent,

Question:

For each of the following YTM figures, calculate the price and current yield for a two-year, 7-percent, annual-pay bond with a of $1,000.
a. YTM = 6 percent
b. YTM = 7 percent
c. YTM = 8 percent

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...