Question
A 30-year bond matures in 7 years sells for $1,000 pays interest semiannually, a face value of $1,000 and has a coupon rate of 10.5%.
A 30-year bond matures in 7 years sells for $1,000 pays interest semiannually, a face value of $1,000 and has a coupon rate of 10.5%.
a. What is the bonds current yield?
b.What is the bonds yield to maturity?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
