Finance Today, a bond has a coupon rate of 12%, par value of $1000, YTM of 9.60%, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond's price was $1,281.05 and the bond had 7 years until maturity. What is the current yield of the bond today? - A rate less than 10.51% or a rate greater than 11.31% - A rate equal to or greater than 10.65% but less than 10.77% - A rate equal to or greater than 10.77% but less than 10.99% - A rate equal to or greater than 10.51% but less than 10.65% - A rate equal to or greater than 10.99% but less than 11.31%
Finance Today, a bond has a coupon rate of 12%, par value of $1000, YTM of 9.60%, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond's price was $1,281.05 and the bond had 7 years until maturity. What is the current yield of the bond today? - A rate less than 10.51% or a rate greater than 11.31% - A rate equal to or greater than 10.65% but less than 10.77% - A rate equal to or greater than 10.77% but less than 10.99% - A rate equal to or greater than 10.51% but less than 10.65% - A rate equal to or greater than 10.99% but less than 11.31%
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
Finance
Today, a bond has a coupon rate of 12%, par value of $1000, YTM of 9.60%, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond's price was $1,281.05 and the bond had 7 years until maturity. What is the current yield of the bond today?
- A rate less than 10.51% or a rate greater than 11.31%
- A rate equal to or greater than 10.65% but less than 10.77%
- A rate equal to or greater than 10.77% but less than 10.99%
- A rate equal to or greater than 10.51% but less than 10.65%
- A rate equal to or greater than 10.99% but less than 11.31%
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