Assume a bond with cash flows of $100 each year and a principal payment of $1,000 in

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Assume a bond with cash flows of $100 each year and a principal payment of $1,000 in five years and a current price of $960. What is
A. Its current yield?
B. Its yield to maturity?

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Modern Portfolio Theory and Investment Analysis

ISBN: 978-1118469941

9th edition

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

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Question Posted: Jun 10, 2015 05:37 AM

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Assume a bond with cash flows of $100 each year and a principal payment of $1,000 in

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A A bonds current yield is simply its annual interest payment di...View the full answer

Modern Portfolio Theory and Investment Analysis

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