Bond P is a premium bond with a 10 per- cent coupon. Bond D is a 4 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have eight years to maturity. What is the current yield for bond P?

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17-06-2024
Business

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Bond P is a premium bond with a 10 per- cent coupon. Bond D is a 4 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have eight years to maturity. What is the current yield for bond P?

Sagot :

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