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Problem 13-10

You are given the following information concerning a noncallable, sinking fund debenture:

• Principal: $1,000
• Coupon rate of interest: 8 percent
• Term to maturity: 13 years
• Sinking fund: 5 percent of outstanding bonds retired annually; the balance at maturit

• a) .What is the bond's current yield as of right now? Round your answer to the nearest whole number._________%

• b) . Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number.______________%

  %

• c) .What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number._____________%