Today, a bond has a coupon rate of 12.9%, par value of $1000, YTM of 9.00%, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond's price was $1,281.05 and the bond had 5 years until maturity. What is the current yield of the bond today? A. A rate equal to or greater than 11.69% but less than 12.20% B. A rate equal to or greater than 11.33% but less than 11.69% C. A rate equal to or greater than 11.21% but less than 11.33% D. A rate equal to or greater than 11.07% but less than 11.21% E. A rate less than 11.07% or a rate greater than 12.20%
Today, a bond has a coupon rate of 12.9%, par value of $1000, YTM of 9.00%, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond's price was $1,281.05 and the bond had 5 years until maturity. What is the current yield of the bond today? A. A rate equal to or greater than 11.69% but less than 12.20% B. A rate equal to or greater than 11.33% but less than 11.69% C. A rate equal to or greater than 11.21% but less than 11.33% D. A rate equal to or greater than 11.07% but less than 11.21% E. A rate less than 11.07% or a rate greater than 12.20%
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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Today, a bond has a coupon rate of 12.9%, par value of $1000, YTM of 9.00%, and semi-annual coupons with the next coupon due in 6 months. One year ago, the
A.
A rate equal to or greater than 11.69% but less than 12.20%
B.
A rate equal to or greater than 11.33% but less than 11.69%
C.
A rate equal to or greater than 11.21% but less than 11.33%
D.
A rate equal to or greater than 11.07% but less than 11.21%
E.
A rate less than 11.07% or a rate greater than 12.20%
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