One year ago, a bond had a coupon rate of 9.94%, par value of $1,000.00, YTM of 10.98%, and semi-annual coupons. Today, the bond's price is the bond has 13 years until maturity. The next coupon is due in 6 months. What was the current yield of the bond one year ago? O 4.73% (plus or minus 2 bps) O 10.73% (plus or minus 2 bps) O 11.85% (plus or minus 2 bps) O 9.46% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer

One year ago, a bond had a coupon rate of 9.94%, par value of $1,000.00, YTM of 10.98%, and semi-annual coupons. Today, the bond's price is the bond has 13 years until maturity. The next coupon is due in 6 months. What was the current yield of the bond one year ago? O 4.73% (plus or minus 2 bps) O 10.73% (plus or minus 2 bps) O 11.85% (plus or minus 2 bps) O 9.46% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer

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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A bond has nine years to maturity, a $1,000 face value, and a 5.9% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $793.54? A. 13.14% B. 7.51% C. 11.26% D. 9.39%
You buy a bond with a $1,000 par value today for a price of $875. The bond has 6 years to maturity and makes semiannual coupon payments at a rate of 9%. If you hold the bond to maturity, what was your effective annual yield? 11.98% 12.04% 12.34% 5.99%
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