What is the current yield on the bonds

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Red Moon Co. has 9.2% coupon bond on the market with 18 years to maturity. The bonds make seminannual payments and currently sell for $106.8% of par.

1) What is the current yield on the bonds?

2) The YTM?

3) The effective annual yield?

4) Is the yield to maturity or effective annual yield a better measure of the interest rate on the semiannual coupon bond?

All underlying work must be shown please.

Reference no: EM13932713

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