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Determine Coupon Rate, Current Yield, and Yield to Maturity

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The Garland Corporation has a $1,000 par value bond outstanding with a $90 annual interest payment, a market price of $820 and a maturity date in five years.

Find the following:
a. The coupon rate.
b. The current yield.
c. The approximate yield to maturity.

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Solution Summary

Given the par value, annual interest payment, market price, and maturity date of a bond outstanding, this solution illustrates how to determine (a) the coupon rate, (b) the current yield, and (c) the approximate yield to maturity.

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