Chapter 7

Round to 2 decimal places. Answer in percent form

(Expected rate of return and current yield) Citigroup issued bonds that pay a coupon interest rate of 7.5 percent. The bonds mature in 6 years. They are selling for $1,130. What would be your expected rate of return (yield to maturity) if you bought the bonds? What would the current yield be? a. Your expected rate of return would be %. (Round to two decimal places.) b. The current yield would be %. (Round to two decimal places.)