What is the yield to maturity


Response to the following problem:

A bond has 16 years until maturity, a coupon rate of 7.8%, and sells for $1,071.

a. What is the current yield on the bond? (Round your answer to 2 decimal places.) Current yield %

b. What is the yield to maturity?

(Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to maturity %

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