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How do compute the bond current yield

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Reference no: EM132843794

A 3.50 percent coupon municipal bond has 13 years left to maturity and has a price quote of 96.85. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.)

Problem 1: Compute the bond's current yield. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Problem 2: Compute the yield to maturity. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132843794

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