Lifehouse Software has 10 percent coupon bonds on the market with 7 years to maturity. The bonds make semiannual payments and currently sell for 104 percent of par. What is the current yield on Lifehouse's bonds?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Current yield

Lifehouse Software has 10O percent coupon bonds on the
market with 7 years to maturity. The bonds make
semiannual payments and currently sell for 104 percent of
par. What is the current yield on Lifehouse's bonds?
Transcribed Image Text:Lifehouse Software has 10O percent coupon bonds on the market with 7 years to maturity. The bonds make semiannual payments and currently sell for 104 percent of par. What is the current yield on Lifehouse's bonds?
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