Find the current yield of a 10%, 25-year bond thats currently priced in the market at $1,250.

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Find the current yield of a 10%, 25-year bond that’s currently priced in the market at $1,250. Now, use a financial calculator to find the yield to maturity on this bond (use annual compounding). What’s the current yield and yield to maturity on this bond given that it trades at $1,000? If it’s priced at $750? Comment on your findings.

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Personal Financial Planning

ISBN: 9781439044476

12th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley

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