QUESTION 7-18 ONLY***

bond's expected rate of return? 7-18. (Bondholders' expected rate of return) You own a bond that has a par value of $1,000 and matures in 5 years. It pays a 5 percent annual coupon rate. The bond cur- rently sells for $1,100. What is the bond's expected rate of return? 7-19. (Expected rate of return and current yield) Time Warner has bonds that are selling for $1,371. The coupon interest rate on the bonds is 9.15 percent, and they rs What is the vield to maturity on the bonds? What is the current