A Sprint bond has 5 years until maturity a coupon rate of 8 percent, and sell for 2,000.
a. What is the current yield on the bond?
b. What is the yield to maturity?
Current yield = Annual interest payment/Market price
= (1,000 x 8%)/2,000
We need to calculate how much the bonds have been ...
This solution is comprised of a detailed explanation to answer what is the current yield on the bond and what is the yield to maturity.