What is the current yield of a bond

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1) What is the current yield of a bond with 15 years to maturity, face value of $1,000, a yield to maturity of 17.10%, and 14.50% coupon rate paid annually? Hint: Calculate price first.

2) A company issued bonds with a 27-year maturity, a $1,000 par value, a 5.0% coupon rate, and semiannual interest payments. 9 years after the bonds were issued, the going rate of interest on bonds such as these changed to 20.0%. At what price would the bonds sell?

Reference no: EM132807092

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