Turn back to Table 6 1 What is the current yield of the 6 25 2030 maturity bond Why is this more than its yield to maturity Maturity 2015, 15 2016, May 15 2017, May 15 2022, May 15 2030, 15 2037, May 15 2042, May 15 Coupon 4 125 7 25 4 5 1 75 6 25 Bid Price 107 7969 120 641 15 6719 100 9922 152 742...

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Turn back to Table 6.1. What is the current yield

Turn back to Table 6.1. What is the current yield of the 6.25% 2030 maturity bond? Why

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Turn back to Table 6.1. What is the current yield of the 6.25% 2030 maturity bond? Why is this more than its yield to maturity?

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Maturity 2015, Мау 15 2016, May 15 2017, May 15 2022, May 15 2030, Мау 15 2037, May 15 2042, May 15 Coupon 4.125 7.25 4.5 1.75 6.25 Bid Price 107.7969 120.641 15.6719 100.9922 152.7422 138.7031 100.2422 Asked Price 107.8203 120.664 115.7031 101.0078 152.8203 138.7813 100.2578 Asked Yield, % 0.23 0.35 0.54 1.63 2.44 2.78 2.99

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The bond pays a coupon of 625 which means annual interest is 6250 The bond ...View the full answer

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Fundamentals of Corporate Finance

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Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:11 AM

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