Consider the table given below to answer the following question. Asked Price Maturity 15-02-2020 15-02-2021 15-02-2025...

 

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Consider the table given below to answer the following question. Asked Price Maturity 15-02-2020 15-02-2021 15-02-2025 15-02-2029 15-02-2036 15-02-2041 15-02-2048- Current yield Coupon Bid Price 1.375 2.25 7.625 130.6719 5.25 4.5 4.75 3 True 98.3281 99.5781 False 121.8516 120.90631 127.2422 97.2656 Chg 98.3438 -0.0078 99.5938 130.6875 121.9141 120.9688 % 0.0313 0.1094 0.2344 0.5313. 127.3047 0.6641 97.2969 0.7266 a. What is the current yield of the 4.50% 2036 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Asked Yield to Maturity (%) 2.228 2.391 2.770 2.908 2.986 3.084 3.140 b. "The current yield is less than the yield to maturity whenever the bond price is greater than the face value." State whether the statement is true or false? Consider the table given below to answer the following question. Asked Price Maturity 15-02-2020 15-02-2021 15-02-2025 15-02-2029 15-02-2036 15-02-2041 15-02-2048- Current yield Coupon Bid Price 1.375 2.25 7.625 130.6719 5.25 4.5 4.75 3 True 98.3281 99.5781 False 121.8516 120.90631 127.2422 97.2656 Chg 98.3438 -0.0078 99.5938 130.6875 121.9141 120.9688 % 0.0313 0.1094 0.2344 0.5313. 127.3047 0.6641 97.2969 0.7266 a. What is the current yield of the 4.50% 2036 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Asked Yield to Maturity (%) 2.228 2.391 2.770 2.908 2.986 3.084 3.140 b. "The current yield is less than the yield to maturity whenever the bond price is greater than the face value." State whether the statement is true or false?

Answer rating: 100% (QA)

a Current yield of the 450 2036 maturity bond Annual Coupon Current Price 100 45 1209063 100 ... View the full answer