Question: 1 . Evaluate the current yield (CY) and yield-to-maturity (YTM) on 8-year and 10 percent annual rate coupon bond, having face value of $4,000 and

1. Evaluate the current yield (CY) and yield-to-maturity (YTM) on 8-year and 10 percent annual rate coupon bond, having face value of $4,000 and selling initially (at the bonds issuance date) for $3,500 at a market annual discount rate of 9 percent. Consider the bonds time to maturity is 2 years.

2. Compare and reflect on changes in bonds CY and YTM for at least two periods.

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