Question
What is the current yield of a bond which carries a 7.5% coupon interest rate (or 0.075), has a face value (FV) of $1,000, has
What is the current yield of a bond which carries a 7.5% coupon interest rate (or 0.075), has a face value (FV) of $1,000, has 17 years until maturity, if the current market price of the bond is $1,250?Also, what would be the yield to maturity (YTM) on this bond?
Current Yield =
yield to maturity=
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
