Tuesday February 27, 2007

With a financial calculator, we find PMT = $60.00. However, because the bond is a semiannual coupon bond this amount needs. to be multiplied by 2 to obtain the annual interest payment: $60.00(2) = $120.00. Finally, find the current yield as follows: Current yield = Annual interest/Current price = $120/$1,060 = 11.32%. 3. ................
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