A bond with 16 years to maturity has an annual interest payment of $40. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY:   % YTM:   %

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
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A bond with 16 years to maturity has an annual interest payment of $40. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places.

CY:   %

YTM:   %

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