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1. One year ago, a bond had a coupon rate of 6.26 percent, par value of $1000, YTM of 9.96 percent, and semi-annual coupons. Today, the bond’s price is 1,077.74 and the bond has 8 years until maturity. What was the current yield of the bond one year ago? The next coupon is due in 6 months. ( Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.)

2. Six months ago, a bond had a coupon rate of 4.68 percent, par value of $1000, YTM of 7.26 percent, and semi-annual coupons. Today, the bond’s price is 993.15 and the bond has 9 years until maturity. What was the current yield of the bond six months ago? The next coupon is due in 6 months. (Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.)

Financial Management, Finance

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