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A 12% coupon bond that matures in 6 years is selling for $1,150. What is the bonds current yield and yield to maturity (YTM)? Assume
A 12% coupon bond that matures in 6 years is selling for $1,150. What is the bonds current yield and yield to maturity (YTM)? Assume semi-annual interest payments.
| Current Yield=10.44%; YTM=8.74% |
| Current Yield=8.74%; YTM=10.44% |
| Current Yield=12.00%; YTM=9.67% |
| Current Yield=9.67%; YTM=12.00% |
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Authors: Kara Tan Bhala
1st Edition
3030737535, 978-3030737535
