I'VE READ THIS IT'S A GREAT BOOK!
Where is the chart? Please attach it!
Answer:
current yield of bond = 5.90%
The coupon rate = 6.00%
Explanation:
Given :
Years to maturity = 3.5 years
Face value = 1000
Bond selling price = $1016.36
Yield to maturity = 5.48% with interest compounded semiannually
Using a financial calculator :
The current yield of bond = 5.90%
The coupon rate = 6.00%
The best answer among the following choices would be the second option B) because C) and D) are normal sentences while B) is complex and A) is fine but needs to replace ''has a tendency'' with ''tends''.
