Currently the price of a 5 year 1000 par value 8


1. Currently, the price of a 4 year, $1000 par value, 8% coupon rate with semi-annual payments bond is $970. What would the bond’s current yield be?

2. Currently, the price of a 5 year, $1000 par value, 8% semi-annual coupon bond is $1025.00. What is this bond’s current yield to maturity?

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Financial Management: Currently the price of a 5 year 1000 par value 8
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