Solution:
Calculation of Current Bond Price:
Current Yield = Annual Coupon Payment / Bond Price
9.50% = (1000*7.25%) / Bond Price
9.50% = $72.50 / Bond Price
Bond Price = $72.50 / 9.50%
= $763.16
Below is the calculation of Yield to maturity with Excel:
Therefore, Correct Option is 12.02%
O $12.782 Question 5 1 pt A bond with a par value of $1,000 and a...
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