Question: A bond issued by ABC Corp. has a face value of $1,000, coupon rate of 8%, price of $1011.83 and time to maturity of one

  1. A bond issued by ABC Corp. has a face value of $1,000, coupon rate of 8%, price of $1011.83 and time to maturity of one year.
    1. What is its current yield?

  1. What is its yield to maturity?

  1. Now suppose instead of having one year to maturity, it has two year to maturity and is priced $1,046.30. What is the current yield and the yield to maturity?

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