Question: Part 1: Compute the current yield on a bond with a yield to maturity of 8.5%, a par value of $1000, a coupon rate of

Part 1:

Compute the current yield on a bond with a yield to maturity of 8.5%, a par value of $1000, a coupon rate of 3.7 % paid semi-annually, a remaining life of 28 years ? (Round to 100th of a percent and enter as a percentage , e.g. 12.34% as 12.34 and state as an annual rate . )

Answer :

Part 2:

Compute the yield to maturity for a zero coupon bond with a maturity of 11 years and a value of $1000 The bond is selling for $482.64(Assume annual discounting .) Round to of a percent and enter as a percentage , e.g. 12.34 % as 12.34)

Answer :

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