Graystone Bonds Have a Maturity Value of $1,000

question 140

Essay

Graystone bonds have a maturity value of $1,000.The bonds carry a coupon rate of 12 percent.Interest is paid semiannually.The bonds will mature in nine years.If the current market price is $976.50,
a.what is the yield to maturity on the bond?
b.what is the current yield on the bond?

---

Definitions:

Apes

A group of primates that includes gibbons, orangutans, gorillas, chimpanzees, and humans, characterized by their lack of tails and more advanced cognitive abilities compared to other primates.

Bonobos

A species of great ape known for its matriarchal society and peaceful, cooperative behaviors, closely related to chimpanzees.

Sexual Behavior

Activities related to physical intimacy and reproduction among humans and animals.

Ovulating

The phase in the female reproductive cycle where an ovary releases an egg, making it available for fertilization.