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(a) A bond matures in 11 years and pays a 5 percent annual coupon. The bond has a face value of $1,000 and currently sells
- (a) A bond matures in 11 years and pays a 5 percent annual coupon. The bond has a face value of $1,000 and currently sells for $959. What is the bonds current yield?
- 4.00%
- 97.50%
- 4.35%
- 5.21% 1. (b) The same facts as in #1 above, what is the yield to maturity on the bond?
- 4.75%
- 8.12%
- 5.51%
- 7.28%
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Introductory Course On Financial Mathematics
Authors: M V Tretyakov
1st Edition
1908977388, 978-1908977380
