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(Expected rate of return and current yield) Time Warner has bonds that are selling for $867. The coupon interest rate on the bonds is 12.20

(Expected rate of return and current yield)

Time Warner has bonds that are selling for $867. The coupon interest rate on the bonds is 12.20 percent and they mature in 28 years. What is the yield to maturity on the bonds? What is the current yield?

a. The yield to maturity on the bond is ___%.

b. The current yield is ___%.

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