Current yield on pk bonds


Problem:

PK Software has 8 percent coupon bonds on the market with 23 years to maturity. The bonds make semiannual payments and currently sell for 109.25 percent of par.

  • What is the current yield on PK's bonds?
  • What is YTM?
  • What is the effective annual yield

Note: Please provide equation and explain comprehensively and give step by step solution.

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Finance Basics: Current yield on pk bonds
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