FYI bonds have a
par value of $1,000. The bonds pay an 8% annual coupon and will mature in 11 years. i) Calculate the price if the yield to maturity on the bonds is 7%, 8% and 9%, respectively. ii) What is the current yield on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively.
I understand how to calculate the current yield (PMT/PV) if the PV is given, but how do you calculate it when it is not given, like in this problem?
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