What is the effective annual yield

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Reference no: EM131598023

PK Software has 7.8 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 97 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?

Reference no: EM131598023

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