Answered: A bond that pays interest semiannually…

A bond that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of $29.00. If the par value is $1,000, what is the current yield? O 5.80% O 3.00% O 5.71% O 6.01%

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 that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of $29.00. If the par
value is $1,000, what is the current yield?
O 5.80%
O 3.00%
O 5.71%
O 6.01%
A Moving to another question will save this response.
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