Consider a $1,000.00 face value bond with a $55 annual coupon and 10 years until maturity. Calculate the current yield; the coupon rate and the yield to maturity under each of the following:
a) The bond is purchased for $940.00
b) The bond is purchased for $1,130.00 c) The bond is purchased for $1,000.00

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The Answer of Consider a $1,000.00 face value bond with a $55 annual coupon and 10 years until maturity. Calculate the current yield; the coupon rate and the yield to maturity under each of the following:
a) The bond is purchased for $940.00
b) The bond is purchased for $1,130.00 c) The bond is purchased for $1,000.00