What is the current yield for a bond that has a coupon rate of 8.7% paid annually, a par value of $1000, and 21 years to maturity? Investors require a return of 12.6% from the bond. ( Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)

What is the current yield for a bond that has a coupon rate of 8.7% paid annually, a par value of $1000, and 21 years to maturity? Investors require a return of 12.6% from the bond. ( Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)

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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Question

What is the current yield for a bond that has a
coupon rate of 8.7% paid annually, a par value
of $1000, and 21 years to maturity? Investors
require a return of 12.6% from the bond. (
Round to 100th of a percent and enter as a
percentage, e.g. 12.34% as 12.34)

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