Question: A bond with a face value of $1,000 has 8 years until maturity, carries a coupon rate of 5.0%, and sells for $1,065.
a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.)
Current yield 4.7 %
b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)
Yield to maturity 4.033 %
c. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)
Yield to maturity %