The Brownstone Corporation's bonds have 6 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%.
Required:
Question 1: What is the yield to maturity at a current market price of $839?
Question 2: What is the yield to maturity at a current market price of $1,183?
Question 3: A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond's current yield? Explain in detail and provide step by step solution.