Question
1.Graystone bonds have a maturity value of $1,000. The bonds carry a coupon rate of 12 percent. Interest is paid semiannually. The bonds will mature
1.Graystone bonds have a maturity value of $1,000. The bonds carry a coupon rate of 12 percent. Interest is paid semiannually. The bonds will mature in nine years. If the current market price is $976.50,
a. what is the yield to maturity on the bond?
b. what is the current yield on the bond?
2.The current yield for a bond is constant over time because the coupon rate is fixed.
True
False
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
