You own a bond with a par value of $1,000 and a coupon rate of 7.00% (semiannual

Question:

You own a bond with a of $1,000 and a rate of 7.00% (semiannual You know it has a current yield of 9.50%. What is its yield to maturity? The bond has 5 years to maturity. Current Yield = (annual payment / price).
a. 14.79%
b. 15.30%
c. 14.60%
d. 15.92%
e. 13.40%
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...