Bond equivalent yield and current yield of security c

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Assume you have $1 million Cash and are trying to choose among three securities to invest. All are default free fixed income securities.

Security C is a 20-year maturity bond with par value of $1,000 and the bond makes semi-annual coupon payments at a coupon rate of 10%. The bond is selling at price of $1,100 per share.

What is the Bond Equivalent Yield and Current Yield of Security C?

Reference no: EM133069371

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