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Assume you purchased a corporate bond at its current market price of $940 on January 1, 2021. It pays 9.25 percent interest annually on December
Assume you purchased a corporate bond at its current market price of $940 on January 1, 2021. It pays 9.25 percent interest annually on December 31 and will mature on December 31, 2030, at which time the corporation will pay you the face value of $1,000. a. Determine the current yield on your bond investment at the time of purchase. (Do not round intermediate calculations and round your final answer to 2 decimal place. Omit the "%" sign in your response.) Current yield % b. Determine the yield to maturity on your bond investment at time of purchase. (Do not round intermediate calculations and round your final answer to 2 decimal place. Omit the "%" sign in your response.) Yield to maturity %
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