Calculate the current yield and yield to maturity


Question1: Brown Enterprises' bonds currently sell for $1,025. They have a nine year maturity, an annual coupon of $80, and a par value of 1,000 dollar. Calculate their current yield?

[A] 9.00%

[B] 9.10%

[C] 9.20%

[D] 7.80%

[E] 7.90%

Question2: Brown Enterprises' bonds currently sell for $1,025. They have a nine year maturity, an annual coupon of $80, and a par value of $1,000. Determine their yield to maturity?

[A] 7.21%

[B] 7.45%

[C] 7.61%

[D] 6.87%

[E] 7.03%

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Finance Basics: Calculate the current yield and yield to maturity
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