Forecasting Default Rates: A Tricky Business

YTC = 4.55%*2 = 9.10% (4) Current yield (CY) = annual coupon payment / current market price. Example: a 10-year bond carries a 6% coupon rate and pays interest semiannually. The market price of the bond is $910.00. What is CY for the bond? Answer: CY = … ................
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