Explore BrainMass

Explore BrainMass

    Current Yield and Yield to Maturity for a bond

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A bond has 16 years until maturity, a coupon rate of 5.8%, and sells for $1,109.

    a. What is the current yield on the bond? (Round your answer to 2 decimal places.)

    Current yield %

    b. What is the yield to maturity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

    Yield to maturity %

    © BrainMass Inc. brainmass.com June 4, 2020, 2:22 am ad1c9bdddf
    https://brainmass.com/business/bond-valuation/current-yield-and-yield-to-maturity-for-a-bond-454668

    Solution Summary

    The solution computes current yield and the yield to maturity for a bond.

    $2.19

    ADVERTISEMENT