A $1,000 bond has a 4 percent coupon and currently sells for $900. The bond matures after

Question:

A $1,000 bond has a 4 percent and currently sells for $900. The bond matures after five years. What is the bond’s anticipated yield? Compare this return with the answer to the previous problem.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...