Difference between current yield and yield to maturity

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Reference no: EM131021679

1. Bob owns a 8% bond that is currently selling for $750. What is the current yield?

2. Mary owns a bond that sells for its par value and has a semiannual interest payment of $35. Calculate the bond’s current yield and yield to maturity.

3. What is the difference between current yield and yield to maturity (as they relate to bonds)?

Reference no: EM131021679

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