Question
A $1,000 20-years bond that pays semi-annual coupons at a rate of 3.74% annually is currently priced to yield a yield to maturity of 5.26%.
A $1,000 20-years bond that pays semi-annual coupons at a rate of 3.74% annually is currently priced to yield a yield to maturity of 5.26%. The bond has 9 years left to maturity. Calculate an investor's current yield if he was to hold the bond for a full year and sell the bond at the end of the year.
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Rich Dads Increase Your Financial IQ Get Smarter With Your Money
Authors: Robert T. Kiyosaki
1st Edition
1612680658, 978-1612680651
