The current yield-the yield to maturity


Problem:

Apple has 8% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 93% of par, or $930. Compute:

1. The Current Yield
2. The Yield to Maturity

What is the difference between these two?

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Finance Basics: The current yield-the yield to maturity
Reference No:- TGS02055769

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