# Question: A 15 year 7 percent coupon rate bond is selling for

A 15-year, 7 percent coupon rate bond is selling for $839.27.

a. What is the current yield?

b. What is the yield to maturity using the trial-and-error approach with annual calculations?

c. Why is the current yield higher/lower than the yield to maturity?

a. What is the current yield?

b. What is the yield to maturity using the trial-and-error approach with annual calculations?

c. Why is the current yield higher/lower than the yield to maturity?

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