Question: Expected rate of return and current yield ) Time Warner has bonds that are selling for $1,121. The coupon interest rate on the bonds is

Expected

rate of return and current

yield)

Time Warner has bonds that are selling for

$1,121.

The coupon interest rate on the bonds is

8.95

percent and they mature in

25

years. What is the yield to maturity on the bonds? What is the current yield?

Question content area bottom

Part 1

a. The yield to maturity on the bond is

(Round to two decimal places.)

Part 2

b. The current yield is

(Round to two decimal places.)

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