A bond has a $1,000 par value,semiannual interest payments of $40,and a current market value of $1,054.The bonds mature in 12.5 years.The coupon rate is _____ percent,the current yield is _____ percent,and the yield to maturity is _____ percent.

Question

Quizplus · Accepted Answer

Coupon rate = ($40 × 2)/$1,000 = 8.00 percentCurrent yield = ($40 × 2)/$1,054 = 7.59 percentYield to maturity = 7.33 percentUsing a financial calculator:

A Bond Has a $1,000 Par Value,semiannual Interest Payments of $40,and