A bond has a $1,000 par value,semiannual interest payments of $45,and a current market value of $1,045.The bonds mature in 11.5 years.The coupon rate is ________ percent,the current yield is ________ percent,and the yield to maturity is ________ percent.

Question

Quizplus · Accepted Answer

Coupon rate = ($45 × 2)/$1,000 = 9.00 percent
Current yield = ($45 × 2)/$1,045 = 8.61 percent
Yield to maturity = 8.38 percent
Using a financial calculator:
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A Bond Has a $1,000 Par Value,semiannual Interest Payments of $45,and