Current yield-yield to maturity

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Reference no: EM131543728

IMEX Global Solutions issued a bond on December 31, 2015 to the public which pays $80 once per year in interest and a $1,000 principal repayment after year 10, and is priced in the open market to reflect a required return of 11.5% to bondholders, or $798. The company’s management has the option of redeeming this bond early for $1,060 plus any accrued interest. As it relates to the IMEX bonds, identify the following: Current Yield Yield to Maturity.

Reference no: EM131543728

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