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Assume you purchased a high-yield corporate bond at its current market price of $925 on January 2, 2004. It pays 6.75 percent interest and it will mature on December 31, 2013, at which time the corporation will pay you the face value of $1,000. (a) Determine the current yield on your bond investment at the time of purchase. (Round your intermediate calculations and final answer to 2 decimal places.) Current yield 72.97 % (b) Determine the yield-to-maturity on your bond investment. (Round your intermediate calculations and final answer to 2 decimal places.) Yield-to-maturity % References

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91804915

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