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    Current Yield and Yield to Maturity for a bond

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    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 %

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    Solution Summary

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