Problem 13-05

Charlotte's Clothing issued a 6 percent bond with a maturity date of 13 years. Five years have passed and the bond is selling for $830. Assume that the bond pays interest annually.

What is the current yield? Round your answer to two decimal places.

%

What is the yield to maturity? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number.

%

If three years later the yield to maturity is 9 percent, what will be the price of the bond? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

$