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Hens has a 7.4% coupon bond on the market with 9 years to maturity. The bond...

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Finance

Hens has a 7.4% coupon bond on the market with 9 years tomaturity. The bond makes semi-annual payments and currently sellsfor 96% of par (presume $1,000 face/par). What is the currentyield? The Yield to Maturity? The Effective Annual Yield? Pleaseshow full work.

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3.6 Ratings (360 Votes)
Face Value 1000 Current Price 96 Face Value Current Price 96 1000 Current Price 960 Annual Coupon Rate 740 Semiannual Coupon Rate 370 Semiannual Coupon    See Answer
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Transcribed Image Text

Hens has a 7.4% coupon bond on the market with 9 years tomaturity. The bond makes semi-annual payments and currently sellsfor 96% of par (presume $1,000 face/par). What is the currentyield? The Yield to Maturity? The Effective Annual Yield? Pleaseshow full work.

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