An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100.
a. What is the current yield on the bond?
b. What is the yield to maturity?
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An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100.
a. What is the current yield on the bond?
b. What is the yield to maturity?
Suppoes that interest is paid annually and face value = 1000, current yield = 7.27%
YTM = 6.6023%
It will be much easier if you use the financial calculator.
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