Question
A.) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 6 years, the coupon rate is 9%
A.) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 6 years, the coupon rate is 9% paid annually, and the market yield (discount rate) is 12%.
What is the bond's Current Yield?
Enter your answer as a percentage, without the '%' sign, and rounded to one decimal. For example, if your answer is 0.031416, which is equivalent to 3.1416%, just enter 3.1
B.) What is the price of a bond with the following features?
10 years to maturity, face value of $1000, coupon rate of 4% (annual coupons) and yield to maturity (discount rate) of 7.1%.
Enter your answer in dollars, rounded to the nearest cent (that's 2 decimals).
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