What is the current yield on bond-value or cost of the bond

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A bond has a coupon rate of 5.375%, pays coupons semiannually, and has a maturity of 5 years. If the yield to maturity is 5.80%, calculate the current cost of a bond with a par value of $1000. What is the current yield on the bond? Assume that one year has passed and that the yield to maturity remains the same at 6%, what is the value or cost of the bond? What would be the value at this time (after one year) if the yield to maturity is 8%?

Reference no: EM131022533

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