Question
Suppose you read in the Wall Street Journal that a bond with face value $1000, coupon rate of 5%, and 10 years (remaining) to maturity.
Suppose you read in the Wall Street Journal that a bond with face value $1000, coupon rate of 5%, and 10 years (remaining) to maturity. Current market conditions are such that the bond sells for $940. What is the bond's current yield? What is the yield to maturity on this bond?
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Valuation Measuring and managing the values of companies
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