[Quantitative] You are interested in a bond for cash flow purposes. You see that a bond...
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[Quantitative] You are interested in a bond for cash flow purposes. You see that a bond with 14 years left to maturity currently trades at a price of $817.00. You also know that it has a coupon rate of 10% with coupons paid semi-annually. What is the bond's current yield? [Quantitative] You are interested in a bond for cash flow purposes. You see that a bond with 14 years left to maturity currently trades at a price of $817.00. You also know that it has a coupon rate of 10% with coupons paid semi-annually. What is the bond's current yield?
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Answer rating: 100% (QA)
To calculate the bonds current yield we need to divide the annual coupon payment by the bonds cur... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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