What is the current yield of the bond

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A bond issued by Boatholders Corporation has a 6% coupon (paid semiannually), a $1,000 par value, and matures 2 years from today. a) If the bond’s yield to maturity is 4%, at what price should it sell today? b) What is the current yield of the bond? c) If the bond’s yield to maturity does not change, at what price will the bond sell one month from today (i.e. what is the bond’s “dirty” or “invoice” price)?

Reference no: EM131964227

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