Problem 6-6 Bond Yields (L01, 2) A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 6.0%, and sells for $1,075. . What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) Current yield . What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as percent rounded to 4 decimal places.) Yield to maturity
Problem 6-6 Bond Yields (L01, 2) A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 6.0%, and sells for $1,075. . What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) Current yield . What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as percent rounded to 4 decimal places.) Yield to maturity
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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![**Problem 6-6 Bond Yields (LO1, 2)**
A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 6.0%, and sells for $1,075.
a. What is the current yield on the bond? *(Enter your answer as a percent rounded to 2 decimal places.)*
[Input Box] Current yield: [ ] %
b. What is the yield to maturity if interest is paid once a year? *(Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)*
[Input Box] Yield to maturity: [ ] %
c. What is the yield to maturity if interest is paid semiannually? *(Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)*
[Input Box] Yield to maturity: [ ] %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a11e060-92c7-4c99-b32c-8bbf9de3d4ca%2Fe9dbadab-81bd-4967-a720-fa04f8e44937%2F0mymwy_processed.png&w=3840&q=75)
Transcribed Image Text:**Problem 6-6 Bond Yields (LO1, 2)**
A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 6.0%, and sells for $1,075.
a. What is the current yield on the bond? *(Enter your answer as a percent rounded to 2 decimal places.)*
[Input Box] Current yield: [ ] %
b. What is the yield to maturity if interest is paid once a year? *(Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)*
[Input Box] Yield to maturity: [ ] %
c. What is the yield to maturity if interest is paid semiannually? *(Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)*
[Input Box] Yield to maturity: [ ] %
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