What is the current yield on this bond

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Reference no: EM132695997

Problem - Calculating current yield and yield to maturity. Describe and differentiate between a bond's

a. current yield and

b. yield to maturity.

Why are these yield measures important to the bond investor? Find the yield to maturity of a 20-year, 9 percent, $1,000 par value bond trading at a price of $850. What's the current yield on this bond?

Reference no: EM132695997

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