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Determine the current yield on your bond investment

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Reference no: EM133156661

Question - Assume you purchased a high-yield corporate bond with a face value of $1,000 at its current market price of $940 on January 2, 2010. It pays 9.25 percent interest and will mature on December 31, 2019.

Required -

(a) Determine the current yield on your bond investment at the time of purchase.

(b) Determine the yield to maturity on your bond investment at the time of purchase.

Reference no: EM133156661

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