PK Software has 8.6 percent coupon bonds on the market with 25 years to maturity. The bonds make semiannual payments and currently sell for 110.75 percent of par.
Requirement 1: What is the current yield on PK's bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Current yield %__________
Requirement 2: What is the YTM? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Yield to maturity % ___________
Requirement 3: What is the effective annual yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Effective annual yield %__________