Bond Price, (PV) = $654
Bond Par Value, (FV) = $1,000
Coupon Rate, (PMT) = 0.094(1,000) = $94
Time to Maturity, (N) = 19 years
Calculating Yield to Maturity,
Using TVM Calculation,
I = [PV = -654, FV = 1,000, N = 19, PMT = 94]
I = 0.1498
So,
Yield to Maturity = 14.98%
Current Yield = Annual Payment/Bond Price
Current Yield = 94/654
Current Yield = 14.37%
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