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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Transcribed Image Text: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 $1,050.40 and
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
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