A 15-year bond has a $1,000 par value bond,a 4% coupon and a yield to maturity of 3.3%.Interest is paid annually.The bond's current yield is

Name: A 15-year bond has a $1,000 par value bond,a 4% coupon and a yield to maturity of 3.3%.Interest is paid annually.The bond's current yield is
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The price of the bond = $1081.78 =
 $40 \left( \frac { 1 - \frac { 1 } { 1.033 ^ { 15 } } } { .033 } \right) + \frac { 1000 } { 1.033 ^ { 15 } }$ Current yield = 40/1081.78 = 3.7%

A 15-Year Bond Has a $1,000 Par Value Bond,a 4