A $1,000 face value bond matures in 16 years,pays interest semiannually,and has a market quote of 102.0562.The coupon rate is 5.5 percent,the current yield is ________ percent,and the yield to maturity is ________ percent.

Question

Quizplus · Accepted Answer

Current yield = (0.055 × $1,000)/ (1.020562 × $1,000)= 0.0539,or 5.39% Or: Current yield = 5.5% / 102.0562% = 0.0539,or 5.39% 11ea6c22_9305_0924_9716_1557580ed389_TB1200_00 Yield to maturity = 2.654% × 2 = 5.31%

A $1,000 Face Value Bond Matures in 16 Years,pays Interest