Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Question
3.
A 6-year Circular File bond pays interest of $80 annually and sells for $950. Par value is $1,000 by assumption.
a)What is its coupon rate? (Round your answer to 2 decimal places.)
b) What is its current yield? (Round your answer to 2 decimal places.)
c) What is its yield to maturity? (Round your answer to 4 decimal places.)
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