Question
Compute the current yield of a(n) 10.5%, 20-year bond that is currently priced in the market at $1,175. Use annual compounding to find the promised
Compute the current yield of a(n) 10.5%, 20-year bond that is currently priced in the market at $1,175. 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.
The current yield is 8.94%
The yield-to-maturity with annual compounding is ______% (round to three decimal points)
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Production And Operations Analysis
Authors: Steven Nahmias
6th Edition
0073377856, 9780073377858
