Consider a 26-year bond with 6 percent annual coupon payments. The market rate (YTM) is 8.6 percent for this bond. The current yield of the bond is. percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69.

Consider a 26-year bond with 6 percent annual coupon payments. The market rate (YTM) is 8.6 percent for this bond. The current yield of the bond is. percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69.

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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Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,034.23.
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