What is the current yield of the? bond

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Bond prices and yields

Assume that a ?$1,000?-par-value bond has a coupon rate of 6% and will mature in 10 years. It has a current price quote of ?$908.06. Given this? information, answer the following questions.

What is the yield to maturity of the? bond?

What is the current yield of the? bond? ( Round in two decimal places)

Why does the current yield differ from the yield to? maturity? ( Round in two decimal places)

One year? later, the market rates have increased to 8.00?%. Assume that you have just received a coupon payment and sold the bond. If you sold your bond at its intrinsic? value, what would the rate of return be on your? investment? ( Round in two decimal places)

Reference no: EM132826192

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