What is the effective annual yield

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Reference no: EM131012054

PK Software has 8.6 percent coupon bonds on the market with 25 years to maturity. The bonds make semiannual payments and currently sell for 110.75 percent of par.

Requirement 1: What is the current yield on PK's bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current yield %__________

Requirement 2: What is the YTM? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Yield to maturity % ___________

Requirement 3: What is the effective annual yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Effective annual yield %__________

Reference no: EM131012054

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