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?

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