Explore BrainMass

Explore BrainMass

    Sprint Bond Value Calculation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    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?

    © BrainMass Inc. brainmass.com March 4, 2021, 7:37 pm ad1c9bdddf

    Solution Preview

    Current yield = Annual interest payment/Market price
    = (1,000 x 8%)/2,000
    = 4.00%

    We need to calculate how much the bonds have been ...

    Solution Summary

    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.