14. Bond P is a premium bond with a coupon rate of 10%. Bond D has a coupon rate of 4% and is currently selling at a discount. Both bonds.make annual payments, have a YTM of 7% and have 10 years to maturity. What is the current yield for Bond P and Bond D respectively? 7.0% and 7.0% 8.26% and 5.07% O 10.15% and 4.62% O 9.15% and 6.38% O 8.77% and 5.93% O None of the above

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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14. Bond P is a premium bond with a coupon rate of 10%. Bond D has a coupon rate of 4% and is
currently selling at a discount. Both bonds.make annual payments, have a YTM of 7% and have
10 years to maturity. What is the current yield for Bond P and Bond D respectively?
O 7.0% and 7.0%
O 8.26% and 5.07%
O 10.15% and 4.62%
9.15% and 6.38%
8.77% and 5.93%
O None of the above
Transcribed Image Text:14. Bond P is a premium bond with a coupon rate of 10%. Bond D has a coupon rate of 4% and is currently selling at a discount. Both bonds.make annual payments, have a YTM of 7% and have 10 years to maturity. What is the current yield for Bond P and Bond D respectively? O 7.0% and 7.0% O 8.26% and 5.07% O 10.15% and 4.62% 9.15% and 6.38% 8.77% and 5.93% O None of the above
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