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-Chapter 6, Problem 13 - What is the current yield for the bond in parts...

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-Chapter 6, Problem 13 - What is the current yield for the bond in parts (a) and (b)? What is the present value of the bond in part (b) at a 10% discount rate? What is the present value of the bond in part (b) at an 11% discount rate? What is the bond's YTM in part (b)? What is the bond's YTM in part (a)? TE **13. BCC has bonds that trade frequently, pay a 7.75 percent coupon rate, and mature in 2021. The bonds mature on March 1 in the maturity year. Suppose an investor bought this bond on March 1, 2016, and assume interest is paid annually on March 1. Calculate the yield-to-maturity assuming the investor bought the bond at the following price, as quoted in the financial press: a. 100 b. 90

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