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A. 686 semiannual coupon bond inatures in 6 vears. The bans has a face value of $1,000 and a current vield of 6.7320%. What are
A. 686 semiannual coupon bond inatures in 6 vears. The bans has a face value of $1,000 and a current vield of 6.7320%. What are the bond's price and VTM? (thint: Refer to foothote 6 places: monationice:s rm 'Brokerage houses cocasionally report a bond's current yidd, defined as the annual interest payment divided by the current price. For example, if Allied's 8% coupon bonds were selling for $981.60, the current yield would be $80/$981.60=8.15%. Unlike the YTM or YTC, the current yield does not represent the actual retum that investors should expect because it does not account for the capital gain or loss that will be realized if the bond is held until it matures or is called. The current yield was popular before calculators and computen came along because it was easy to calculate. However, it can be milsleading, and now it's easy enough to calculate the YTM and YTC. Constant at of Whaseat A 6% semianual coupon bond motares in 6 years. The bond has a face value of $1,000 and a current yield of 6.7320%. What are the bond's price and hm? (Hint: Refer to foothote 6 plocke Bondis prike: s rm
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