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Atlanta Corp. issued a 10-year bond two years ago. It has a 6.25% coupon and pays interest semi-annually. The face value of the bond is

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Atlanta Corp. issued a 10-year bond two years ago. It has a 6.25% coupon and pays interest semi-annually. The face value of the bond is $1,000 and the current market price is $1250. a) What is the yield to maturity? (4 marks) b) What is the current yield on the bond? (3 marks) c) If the Bank of Canada increases interest rates by 1% tomorrow, what will be the next coupon payment on this bond? (1mark) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS

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