Compute the current yield of a(n)

10%,

20-year

bond that is currently priced in the market at

$1,225.

Use annual compounding to find the promised yield on this bond. Repeat the promised yield calculation, but this time use semiannual compounding to find yield-to-maturity.

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Part 1

The current yield is

(Round to two decimal places.)

Part 2

The yield-to-maturity with annual compounding is

%(Round to three decimal places.)

Part 3

The yield-to-maturity with semiannual compounding is

%.

(Round to three decimal places.)