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Chapter 12 Financial Planning Exercise 6 Calculating and interpreting current yield and yield to maturity

Find the current yield of a 10%, 25-year bond that's currently priced in the market at $1,250. Now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What's the current yield and yield to maturity on this bond if it trades at $1,000? If it's priced at $750? The par value of the bond is $1,000. Round your answers to two decimal places. Do not round intermediate calculations.

Quote	Current Yield	Yield to Maturity
10%, 25 yr., $1,250	%	%
10%, 25 yr., $1,000	%	%
10%, 25 yr., $750	%	%