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TVG is an AA-rated corporation. Three years ago, it issued $10,000,000 worth of 20-year, $1,000-face-value bonds paying a coupon rate of 4% (with semi-annual payments).
TVG is an AA-rated corporation. Three years ago, it issued $10,000,000 worth of 20-year, $1,000-face-value bonds paying a coupon rate of 4% (with semi-annual payments). These bonds are now selling for $945. Calculate the Current Yield and YTM for these bonds. 4 tries left (Select the best answer below.) A. CY=2.12%; YTM = 4.47% B. CY= 8.47%; YTM = 4.42% C. CY= 4.23%; YTM = 4.47% D. CY= 8.47%; YTM = 4.47%
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