What is the current yield on a bond

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Problem 1: What is the price of a bond that has the following characteristics: (a) Years until maturity: 20, (b) Coupon Payments: $50.00, and (c) Rate: 6%.

Problem 2: Is the bond from Problem 1 selling at a: (a) discount to par, (b) premium to par, or (c) par value.

Problem 3: What is the price of a bond that pays semi-annual coupon payments and has the following characteristics: (a) Years until maturity: 10, (b) Annual coupon payment: $90, and (c) Annual interest rate: 10%.

Problem 4: What is the market rate of interest for a bond that has the following characteristics: (a) Price: $890.00, (b) Coupon: $75.00, and (c) Number of years until maturity: 10?

Problem 5 (Challenge): What is the current yield on a bond that has the following characteristics: (a) Price: $890.00, (b) Coupon: $75.00, and (c) Number of years until maturity: 10?

Reference no: EM13210805

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