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Bond Yields and Bond Pricing

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3. Bond Yields. A bond with face value $1,000 has a current yield of 7 percent and a coupon rate of 8 percent. What is the bond's price?

4. Bond Pricing. A 6-year Circular File bond pays interest of $80 annually and sells for $950. What are its coupon rate, current yield, and yield to maturity?

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Solution Summary

This solution provides calculations for questions regarding bond yields and bond pricing.

Solution provided by:
Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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