A bond matures in 5 years and pays a 6.00% annual coupon. The bond has a face value of $1,000 and currently sells for $1,020. What is the bond’s current yield? what is the yield to maturity of the bond ?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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A bond matures in 5 years and pays a 6.00% annual coupon. The bond has a face value of $1,000 and currently sells for $1,020. What is the bond’s current yield? what is the yield to maturity of the bond ?
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