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1) Jennifer Davis wants to invest in four-year bonds that are currently priced at $853.73....

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Accounting

1) Jennifer Davis wants to invest in four-year bonds that are currently priced at $853.73. These bonds have a coupon rate of 5.7 percent and make semiannual coupon payments. What is the current market yield on this bond? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)

Current Market Yield?

2) David Davis bought 10-year, 11.5 percent coupon bonds issued by the U.S. Treasury three years ago at $908.65. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $802.84, what is his realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)

Realised rate of return?

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