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    Coupon Rate, Current Yield, Yield To Maturity

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    Gray House is issuing bonds paying $105 annually that will mature fifteen years from today. The bond is currently selling for $980.
    Calculate:
    (a) Coupon Rate
    (b) Current Yield
    (c) Yield To Maturity

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    Gray House is issuing bonds paying $105 annually that will mature fifteen years from today. The bond is currently selling for $980.
    Calculate:
    (a) Coupon Rate
    Coupon rate = Annual interest / Par value= $105/$1000= 10.50%

    Answer: ...

    Solution Summary

    Calculates coupon rate, current yield and yield to maturity of a bond.

    $2.19

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