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Current Yield and Yield to Maturity of a bond
160380 Current Yield and Yield to Maturity of a bond You hold a 10-year-maturity coupon bond that was issued 9 years ago with a coupon rate of 10%.
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Yield To Maturity of the Bond
Bond A $1,000 Coupon interest rate 9% Years to maturity 8 Current Value $820
Bond B $1,000 Coupon interest rate 12% Years to maturity 16 Current Value $1,000
Bond C $500 Coupon interest rate 12% Years to maturity 12 Current Value $560
Bond D $1,000
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Coupon Rate, Current Yield, Yield To Maturity
, yield= 10.74% =(105+(1000-980)/15)/(0.5*(1000+980))
Answer: Yield to maturity= 10.77% Calculates coupon rate, current yield and yield to maturity of a bond.
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Bond value, yield to maturity, coupon rate, current yield
None of the answers above
For a premium bond (Price> Par): Coupon rate > Current yield> Yield to Maturity
For a par value bond (Price= Par): Coupon rate = Current yield = Yield to Maturity
For a discount bond (Price< Par): Coupon rate <Current yield
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Calculating Yield to Maturity and Current Yield
180365 Calculating Yield to Maturity and Current Yield 4. Bond Pricing. A 6-year Circular File bond pays interest of $80 annually and sells for $950. What are its coupon rate, current yield, and yield to maturity?
5. Bond Pricing.
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Coupon Rates, Coupon Yields and Maturity
The current yield is the return on investment relating the coupon rate to the dollar amount used to purchase the bond.
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Difference in Yield Types
25046 Difference in Yield Types What is the difference between the following yields: coupon rate, current yield,yield to maturity? Coupon rate is the annual interest rate stated or specified on that face of your mortgate note.
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Calculate: Bond Yields and Pricing
What are its coupon rate, current yield, and yield to maturity?
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Yield to maturity calculations for bonds
235969 Yield to maturity computations for bonds What is the yield to maturity on a 10 year, 9 percent annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20?
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Bonds - Bond Par Value
If we compare, we can see that
Yield to maturity = 6.60%
Current yield = 7.27%
Coupon rate = 8.00%
Yield to maturity is the smallest because of the higher price paid to purchase the bond and hold until the maturity date while the coupon rate