An investor is considering purchasing a bond with a 5

Finance Dec 15, 2020

An investor is considering purchasing a bond with a 5.77 percent coupon interest rate, a par value of $1,000, and a market price of $827.00. The bond will mature in nine years. Based on this information, answer the following questions:
a) What is the bond's current yield?
b) What is the bond's approximate yield to maturity?
c) What is the bond's yield to maturity using a financial calculator?
Note: Assume coupon payments are paid annually

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