1. A 12%, 20-year bond is currently trading at $1250. What is its current yield? 2. Zack buys a… 1 answer below »

1. A 12%, 20-year bond is currently trading at $1250. What is its current yield?

2. Zack buys a 10% corporate bond with a current yield of 6%. How much did he pay for the bond?

3. Which of the following three bonds offers the highest current yield?

a. A 9.5%, 20-year bond quoted at 977.50

b. A 16%, 15-year bond quoted at 1646.25

c. A 5.25%, 18-year bond quoted at 540.00

 

 

 

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