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Problem 6-1 Financial Pages (LO1) Consider the table given below to answer the following question. Maturity 15-02-2020 15-02-2021 15-02-2025 15-02-2029 15-02-2036 15-02-2041 15-02-2048 Coupon 1.375

Problem 6-1 Financial Pages (LO1) Consider the table given below to answer the following question. Maturity 15-02-2020 15-02-2021 15-02-2025 15-02-2029 15-02-2036 15-02-2041 15-02-2048 Coupon 1.375 2.25 7.625 5.25 4.5 4.75 3 Bid Price Asked Price 98. 3281 98.3438 99.5781 99.5938 130.6719 130.6875 121.8516 121.9141 120.9063 120.9688 127.2422 127.3047 97.2656 97.2969 Chg -0.0078 0.0313 0.1994 0.2344 0.5313 0.6641 0.7266 Asked Yield to Maturity (%) 2.228 2.391 2.770 2.908 2.986 3.084 3.140 a. What is the current yield of the 1.375% 2020 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current yield % b. The current yield is less than the yield to maturity whenever the bond price is greater than the face value." State whether the statement is true or false? O True O False

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