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A 20-year, zero-coupon bond was recently being quoted at 13.283% of par. Find the current yield and the promised yield of this issue, given that
A 20-year, zero-coupon bond was recently being quoted at 13.283% of par. Find the current yield and the promised yield of this issue, given that the bond has a par value of $1,000. Then, using semiannual compounding, determine how much an
investor would have to pay for this bond if it were priced to yield 13.620%.
The current yield on this bond is%. (Round to the nearest whole percent.)
The promised yield of this issue is| %. (Round to two decimal places.)
Using semiannual compounding, the amount an investor would have to pay for this bond if it were priced to yield 6.81% is $. (Round to the nearest cent.)
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