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Bond Valuation and Current Yield

In the bond has a face value of 1,000,000, at what price did the bond sell for that is maturing in 2007?

What is the current yield for the bond maturing in 2007?

See attached file for full problem description.

Suppose you found the following bond quote for AT & T in the Wall Street Journal

%
Bond Curr Vol. Close
Yld.

ATT 7 1/2 13 5.8 32 131 3/8
ATT 8.1 s07 ??? 25 141 11/32
ATT 9 3/4 18 8.5 41 ???

In the bond has a face value of 1,000,000, at what price did the bond sell for that is maturing in 2007?

What is the current yield for the bond maturing in 2007?

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The quote given above is quoted as a percentage of the face value
A quote of 141 11/32 means the ...

Solution Summary

The solution explains how to calculate the price of the bond and its current yield.

$2.19