# Question: Assume a bond with cash flows of 100 each year

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?

A. Its current yield?

B. Its yield to maturity?

## Answer to relevant Questions

Assume you can lend and borrow at 5% and have $20,000 in income in each of two periods. Further assume you have current wealth of $50,000. What is your opportunity set? Given the following bonds and prices of bonds, what are the spot rates and forward rates? Given the following bonds: Bond ... Duration (years) A ...... 5 B...... 10 C...... 12 Construct three different portfolios of the three bonds, each with a duration of nine years. Determine the value of the following call using the Black-Scholes model. The stock currently sells for $95, and the instantaneous standard deviation of the stock's return is 0.6. The call has an exercise price of $105 and ...For the data in Problem 1, what is the Treynor measure and ranking? In Problem 1Post your question