Question
An investor is considering purchasing a bond with a 5.88 percent coupon interest rate, a par value of $1,000, and a market price of $826.17.
An investor is considering purchasing a bond with a 5.88 percent coupon interest rate, a par value of $1,000, and a market price of $826.17. The bond will mature in nine years. Based on this information, answer the following questions:
a. What is the bond's current yield?
b. What is the bond's approximate yield to maturity?
c. What is the bond's yield to maturity using a financial calculator? Note: Assume coupon payments are paid annually
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Foundations Of Financial Markets And Institutions
Authors: Franco Modigliani, Frank J. Jones, Michael G. Ferri, Frank J. Fabozzi
3rd Edition
0130180793, 978-0130180797
