4.561 69% 10:41 Zoom Leave REC Site See mature in year 102 P6-11 Current yield and yield to maturity An annual coupon bond has a $1,000 face value, coupon rate of 5%, will mature 10 years, and currently sells for $810.34. a. What is the yield to maturity of the bond? b. What is the current yield of the bond? c Why does the current yield differ from the yield to maturity? d. One year later, the market rates have increased to 8%. Assume that you have just received a coupon payment and you sold the bond. If you sold your bond at its intrinsic value, what would be the rate of return on your investment? Personal Finance Problem P8-12 Valuation fundamentals Imagine that you are trying to evaluate the economics of por chasing an automobile. You expect the car to provide annual after-tax cash benefits of $1,200 at the end of each year and assume that . 1A From 1182507-sujood atta to Everyone 3 Unmute Start Video Share Participants More