Bmw issued 20 year 1000 bonds in 2014 with an annual coupon


BMW issued 20 year $1,000 bonds in 2014 with an annual coupon rate of 7.45%. In 2016 after the coupon for 2016 is paid, that bond can be purchased for $1,285. If you bought this bond, what is the current yield and yield to maturity?

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Financial Management: Bmw issued 20 year 1000 bonds in 2014 with an annual coupon
Reference No:- TGS01372986

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