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A bond with 13 years to maturity has an annual interest payment of $55. If the...

A bond with 13 years to maturity has an annual interest payment of $55. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places.

CY:   %

YTM:   %

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Answer #1

current yield = coupon paid = price 5.50% 55/1000 YTM = Yield to maturity = 5.50% [ at par, coupon rate = YTM ]

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