Problem 13-05 Charlotte's Clothing issued a 7 percent bond with a maturity date of 16...
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Finance
Problem 13-05
Charlotte's Clothing issued a 7 percent bond with a maturity date of 16 years. Six years have passed and the bond is selling for $870. Assume that the bond pays interest annually.
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What is the current yield? Round your answer to two decimal places.
%
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What is the yield to maturity? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number.
%
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If five years later the yield to maturity is 9 percent, what will be the price of the bond? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
$
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