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1. A bond with Tk.1,000 par value and 12 percent annual interest (coupon) rate will mature in 6 years. The bond is selling for Tk.990.
1. A bond with Tk.1,000 par value and 12 percent annual interest (coupon) rate will mature in 6 years. The bond is selling for Tk.990. Calculate the current yield on the bond. (2 points) 4. A bond with 10 years to maturity paying annual interests has an yield of 7.825 percent. The same bond paying semiannual interests would have an yield of 7.592 percent. What is the basis point difference between the two yields? (2 points)
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