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you currently own a bond you purchased at par when it was issued ten years ago. the bond has a 7 percent annual coupon and
you currently own a bond you purchased at par when it was issued ten years ago. the bond has a 7 percent annual coupon and matures 5 years from now. which one of the following statements applies to this bond if the relevant market interest rate is now 4.8 percent?
a. the current yield to maturity is greater than 7 percent
b. the current yield if 7 percent
c. the next interest payment will be $35
d. the bond is currently valued at one-half of its issue price
e., you will realize a capital gain on the bond if you sell it today
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