A bond has $1,000 face value, coupon rate of 5.6%, and yield to maturity (YTM) of 10.6%. It will mature in 21 years and the interest rate will compound semiannually. What is this bond's current yield? O 9.81% O 10.52% 09.62% O 11.54%

A bond has $1,000 face value, coupon rate of 5.6%, and yield to maturity (YTM) of 10.6%. It will mature in 21 years and the interest rate will compound semiannually. What is this bond's current yield? O 9.81% O 10.52% 09.62% O 11.54%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A bond has $1,000 face value, coupon rate of 5.6%, and yield to maturity (YTM) of 10.6 %. It will
mature in 21 years and the interest rate will compound semiannually. What is this bond's current
yield?
O 9.81%
O 10.52%
9.62%
O 11.54%

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