Bond Valuation and Current Yield
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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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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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Solution Summary
The solution explains how to calculate the price of the bond and its current yield.
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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 ...
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