An investor is considering purchasing a bond with a 5.25 percent coupon interest rate, a par value of $1,000, and a market price of $926.31. The bond will mature in nine years. Based on this information, answer the following questions: a. What is the bond's current yield? b. What is the bond's approximate yield to maturity? c. What is the bond's yield to maturity using a financial calculator? ... a. The bond's current yield is 5.67 %. (Round to two decimal places.) b. The bond's approximate yield to maturity is 6.30 %. (Round to two decimal places.) c. Using a financial calculator, the bond's yield to maturity is %. (Round to two decimal places.)

An investor is considering purchasing a bond with a 5.25 percent coupon interest rate, a par value of $1,000, and a market price of $926.31. The bond will mature in nine years. Based on this information, answer the following questions: a. What is the bond's current yield? b. What is the bond's approximate yield to maturity? c. What is the bond's yield to maturity using a financial calculator? ... a. The bond's current yield is 5.67 %. (Round to two decimal places.) b. The bond's approximate yield to maturity is 6.30 %. (Round to two decimal places.) c. Using a financial calculator, the bond's yield to maturity is %. (Round to two decimal places.)

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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You observe the following bond trading in the market for $10.540: Face value of $10,000, 4 years to maturity, and 6% coupon. What is the yield to maturity? Please be sure to express your answer as a percentage without the % sign.
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