A bond has a coupon rate of 4.5%. It pays interest semiannually, and it has...
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A bond has a coupon rate of 4.5%. It pays interest semiannually, and it has 12 years remaining until maturity. Currently, the bond's price is $952 for every $1000 face value bond. Find this bond's current yield. 5.25% 4.73% 5.04% 3.84% 2.36% Three years ago, you purchased a 7% coupon, semiannual bond issued by Zen Corp. with a time to maturity of 8 years. You paid a price of $895.15 for each $1000 face value of the bond. What was the yield to maturity on the bond at the time of your purchase? 10.27% 9.61% 8.80% 7.93% 11.08% Recall the Zen Corp. bond that you purchased three years ago. It had a 7% coupon, paid interest semiannually, and had 8 years left to maturity at the time your bought it. You paid a price of $895.15 for each $1000 face value of the bond. Today, the yield on that bond is 80 basis points lower than when you purchased the bond, and you sell the bond now. Find your realized rate of return on this bond investment. 8.92% 9.81% 11.08% 7.76% 9.61%
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