Bonds’ Current Yield Assignment | Homework For You
June 9th, 2020
Yasmin Enterprises’ bonds currently sell for $1,150, have an 11% coupon interest rate and a $1,000 par value, pay interest annually, and have 18 years to maturity.
- Calculate the bonds’ current yield.
- Calculate the bonds’ yield to maturity (YTM).
- Compare the YTM calculated in part b to the bonds’ coupon interest rate and current yield (calculated in part a). Use a comparison of the bonds’ current price and par value to explain these differences. Get Finance homework help today