Question: 4. Bond Yields. A bond with face value $1,000 has a current yield of 6% and a coupon rate of 8%. ( LO a. If

4. Bond Yields. A bond with face value $1,000 has a

4. Bond Yields. A bond with face value $1,000 has a current yield of 6% and a coupon rate of 8%. ( LO a. If interest is paid annually, what is the bond's price? b. Is the bond's yield to maturity more or less than 8% ? FV=$1,000CY=6%CR=8% Annual Coupon =FVCR Annual Coupon =$1,000.8=$80 a. Current Yield = Annual Coupon / Price Price = Annual Coupon/Current Yield Price =?? ? b. If the bond sells at premium YTMCR

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