Bond Yields – A bond with face value $1,000 has a current yield of 6% and a coupon rate of 8%.

a. If interest is paid annually, what is the bond’s price?

b. Is the bond’s yield to maturity more or less than 8%?

Skip to content
# Bond Yields – A bond with face value $1,000 has a current yield of 6% and a coupon rate of 8%. a. If interest is paid annually, what is the bond’s

Bond Yields – A bond with face value $1,000 has a current yield of 6% and a coupon rate of 8%.

a. If interest is paid annually, what is the bond’s price?

b. Is the bond’s yield to maturity more or less than 8%?