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Assume you purchased a high-yield corporate bond with a face value of $1,000 at its current market price of $845 on January 2, 2010. It
Assume you purchased a high-yield corporate bond with a face value of $1,000 at its current market price of $845 on January 2, 2010. It pays 8.75 percent interest and will mature on December 31, 2019. (a) Determine the current yield on your bond investment at the time of purchase. (Enter your answer as a percent rounded to 2 decimal places.)
(b) Determine the yield to maturity on your bond investment at the time of purchase. (Enter your answer as a percent rounded to 2 decimal places.)
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