Yield to maturity-what would be your expected rate of return

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Yield to maturity

Assume the market price of a 12?-year bond for Margaret Inc. is $925?, and it has a par value of $1,000. The bond has an annual interest rate of 9?% that is paid semiannually. What is the yield to maturity of the? bond?

The yield to maturity of the bond is ........%. (Round to two decimal places. Expected rate of return and current yield)

Citigroup issued bonds that pay a coupon interest rate of 9 percent. The bonds mature in 11 years. They are selling for $ 908.

What would be your expected rate of return? (yield to maturity) if you bought the? bonds? What would the current yield be?

a. Your expected rate of return would be %.

(Round to two decimal places.)

b. The current yield would be %. (Round to two decimal places)

Reference no: EM132025629

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