Rolling Company bonds have a coupon rate of 5.60 percent, 22 years to maturity, and a current price of $1,166. What is the YTM? Thecurrent yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)YTM%Current yield4.80 %

Step 1: Given Value for Calculation Coupon Rate = c = 5.60%Time = t = 22 YearsCurrent Price of Bond…

Answered: Rolling Company bonds have a coupon…

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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Rolling Company bonds have a coupon rate of 5.60 percent, 22 years to maturity, and a current price of $1,166. What is the YTM? The current yield? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) YTM % Current yield 4.80 %