question 5

A Japanese company has 10.4 percent coupon bonds on the market with 16 years to maturity. The bonds make semiannual payments and currently sell for $1,080 and have a face value of $1,000. a. What is the current yield on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective annual yield or effective annual return (EAR)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Current yield b. YTM c. Effective annual yield % % %