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On February 1, 2011, Robinson Corp. sold a $700 million bond issue to finance the purchase of a new distribution facility. These bonds were issued

On February 1, 2011, Robinson Corp. sold a $700 million bond issue to finance the purchase of a new distribution facility. These bonds were issued in $1,000 denominations with a maturity date of September 1, 2031. The bonds have a coupon rate of 6.00% with interest paid semiannually. Required: b) Assume that the bonds are selling for $875.00. Determine the current yield and the yield-to-maturity. Explain what these terms mean.

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