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Preston Corporation has a bond outstanding with an annual interest payment of $90, a market price of $1,220, and a maturity date in 10 years.

Preston Corporation has a bond outstanding with an annual interest payment of $90, a market price of $1,220, and a maturity date in 10 years. Assume the par value of the bond is $1,000.

6.01


a.	Coupon rate	9.00	%
b.	Current yield	7.38	%
c-1.	Approximate yield to maturity		%
c-2.	Exact yield to maturity	6.01	%

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