Yield to maturity and current yield

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Today is a day in May 2525 and a bond with an coupon rate of 8.0% just yesterday paid a coupon. The bond matures in November 2540 and its quoted bond price is 118.03 percent of par (semi annual compounding). Find the yield to maturity (YTM) and current yield.

a. The current yield is 5.86% and the YTM is 6.18%

b. The current yield is 3.39% and the YTM is 3.09%

c. The current yield is 6.78% and the YTM is 3.09%

d. The current yield is 6.78% and the YTM is 6.18%

e. The current yield is 3.39% and the YTM is 6.18%

Reference no: EM13812395

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