Workman Software has 10.4 percent coupon bonds on the market with 15 years tomaturity. The bonds make semiannual payments and currently sell for 93.6 percent ofpar.a. What is the current yield on the bonds?FJALE11.11%O 0.21%O 11.67%O 12.17%b. The YTM?O 11.29%O 11.47%O 10.90%O 5.64%c. The effective annual yield?11.61%O 11.26%O 12.19%O 0.11%

Answered: a. What is the current yield on the…

a. What is the current yield on the bonds? 11.11% O 0.21% O 11.67% O 12.17% b. The YTM? O 11.29% O 11.47% O 10.90% O 5.64% c. The effective annual yield? O 11.61% O 11.26% O 12.19% O 0.11%

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

Workman Software has 10.4 percent coupon bonds on the market with 15 years to
maturity. The bonds make semiannual payments and currently sell for 93.6 percent of
par.
a. What is the current yield on the bonds?
FJALE
11.11%
O 0.21%
O 11.67%
O 12.17%
b. The YTM?
O 11.29%
O 11.47%
O 10.90%
O 5.64%
c. The effective annual yield?
11.61%
O 11.26%
O 12.19%
O 0.11%

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