1) A bond with a face value of $1,000 has 14 years until maturity, carries a coupon rate of 8.6%, and sells for $1,104.
a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) Current yield %
b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations.
Enter your answer as a percent rounded to 4 decimal places.) Yield to maturity % c. What is the yield to maturity if interest is paid semiannually?
(Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) Yield to maturity %
2 ) Problem 6-15 Bond Pricing (LO2) Maxcorp's bonds sell for $1,116.28. The bond life is 9 years, and the yield to maturity is 7.2%. What is the coupon rate on the bonds?
(Assume a face value of $1,000 and annual coupon payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Coupon rate %