Face value bond with an annual coupon

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A $1,000 face value bond, with an annual coupon of $32, one year to maturity and a purchase price of $975 has:

A current yield that equals 2.54% and a yield to maturity that equals 3.96%

A coupon rate that equals 3.2%

A current yield that equals 3.28% and a yield to maturity that equals 5.85%

A current yield that equals 2.54% and a yield to maturity that equals 5.43%

Reference no: EM131099884

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