Yield to Maturity Assignment | Homework For You

A bond with a face value of $5,000 has 10 years until maturity, a coupon rate of 3%, and sells for $5,500. What is the current yield on the bond, and what is the yield to maturity?
A. 2.73% Current Yield and 2.48% Yield to Maturity
B. 2.95% Current Yield and 2.48% Yield to Maturity
C. 3.27% Current Yield and 1.30% Yield to Maturity
D. 3.27% Current Yield and 1.50% Yield to Maturity
E. None of the above. Get Finance homework help today