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margarivera
Jul 31, 2008, 04:36 PM
Bond Pricing.

A 6-year Circular File bond pays interest of $80 annually and sells for $950.

What is its coupon rate, current yield, and yield to maturity?

Thank You.

Ithappenstoall
Aug 21, 2008, 01:47 AM
coupon rate would be if par 1000$ is 8 % annuallly ( 80/1000)
current yield would be 80/950 = 8.42%
For YTM I believe we require more info