Yield to maturity
Assume the market price of a 12?-year bond for Margaret Inc. is $925?, and it has a par value of $1,000. The bond has an annual interest rate of 9?% that is paid semiannually. What is the yield to maturity of the? bond?
The yield to maturity of the bond is ........%. (Round to two decimal places. Expected rate of return and current yield)
Citigroup issued bonds that pay a coupon interest rate of 9 percent. The bonds mature in 11 years. They are selling for $ 908.
What would be your expected rate of return? (yield to maturity) if you bought the? bonds? What would the current yield be?
a. Your expected rate of return would be %.
(Round to two decimal places.)
b. The current yield would be %. (Round to two decimal places)