(Expected Rate of Return & Current Yield) Citigroup issued bonds that pay a coupon interest...
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(Expected Rate of Return & Current Yield)
Citigroup issued bonds that pay a coupon interest rate of 6%.
The bonds mature in 7 years.
They are selling for $849. Therefore, what would be your expected rate of return (yield to maturity) if you bought the bonds, and what would the current yield be?
a) what would be you expected rate of return?
b) What would the current yield be?
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