Current yield Answer: d Diff: E
78. A 12-year bond pays an annual coupon of 8.5 percent. The bond has a yield to maturity of 9.5 percent and a par value of $1,000. What is the bond’s current yield?
a. 6.36%
b. 2.15%
c. 8.95%
d. 9.14%
e. 10.21%
Current yield Answer: c Diff: E
79. A 15-year bond with an 8 percent annual coupon has a face value of $1,000. The bond’s yield to maturity is 7 percent. What is the bond’s current yield?
a. 3.33%
b. 5.00%
c. 7.33%
d. 7.50%
e. 8.00%
Current yield and yield to maturity Answer: b Diff: E
80. A bond matures in 12 years and pays an 8 percent annual coupon. The bond has a face value of $1,000 and currently sells for $985. What is the bond’s current yield and yield to maturity?
a. Current yield = 8.00%; yield to maturity = 7.92%
b. Current yield = 8.12%; yield to maturity = 8.20%
c. Current yield = 8.20%; yield to maturity = 8.37%
d. Current yield = 8.12%; yield to maturity = 8.37%
e. Current yield = 8.12%; yield to maturity = 7.92%
Share with your friends: | 
