The following information from the close of trading on, Ask an Expert

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The following information from the close of trading on January 15, 2010 is for an IBM bond with a face value of $1,000 and a maturity date of October 22, 2012:

Coupon rate: 5.050%
Price: $1,096.20
Yield to maturity: 2.101%

a. What was the bond's current yield?

b. Why is the bond's yield to maturity less than its coupon rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92060125

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