Question
Find the current yield of a 5.6 percent, 8-year bond that's currently priced in the market at $853.75. Now, use a financial calculator to find
Find the current yield of a 5.6 percent, 8-year bond that's currently priced in the market at $853.75. Now, use a financial calculator to find the yield to maturity on this bond ( use annual compounding). What's the current yield and the yield to maturity on this bond if it trades at $1000? if it's priced at $750? Comment on your findings.
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
