Consider the table given below to answer the following question. Maturity 15-02-2020 Chg -0.0078 Asked...
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Consider the table given below to answer the following question. Maturity 15-02-2020 Chg -0.0078 Asked Yield to Maturity (%) 2.228 15-02-2021 Coupon 1.375 2.25 7.625 5.25 0.0313 2.391 2.770 15-02-2025 15-2-2029 Bid Price Asked Price 98.3281 98.3438 99.5781 99.5938 130.6719 130.6875 121.8516 121.9141 120.9863 120.9688 127.2422 127.3847 97.2656 97.2969 2.908 0.1094 0.2344 0.5313 0.6641 15-02-2036 4.5 2.986 15-2-2041 3.084 4.75 3 15-02-2048 0.7266 3.140 a. What is the current yield of the 3.00% 2048 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current yield % b. The current yield is less than the yield to maturity whenever the bond price is greater than the face value." State whether the statement is true or false? True O False
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