6-14&6-15

A bond that matures in 6 years sells for $1, 090. The bond has a face value of $1,000 and a yield to maturity of 5.2328%. The bond pays coupons semiannually. What is the bond's current yield? Waterman's 14% coupon rate, semiannual payment, $1,000 par value bonds that mature in 22 years are callable 4 years from now at a price of $1, 090. The bonds sell at a price of $1, 410 and the yield curve is flat. Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds