The 6.3 percent, semi-annual coupon bonds of pe engineers mature in 13 years and have a price quote of 99.2. these bonds have a current yield of percent, a yield to maturity of percent, and an effective annual yield of percent
a) 6.23; 6.36; 6.42
b) 6.23; 6.20; 6.16
c) 6.12; 6.36; 6.42
d) 6.35; 6.39; 6.49
e) 6.35; 6.32; 6.29

Hi, the answer is D) current yield=6.35% ; YTM=6.39% ; Effective annual rate=6.49%

Explanation:

In order to decide, we need to use 3 formulas with the information given, let´s start to solve this.

Current yield

Now, our bond is its face value times the coupon, (for all bonds, its face value is 100)

Therefore, 100x6.3% = 6.3

Yield to Maturity (YTM)

We should only follow this formula.

Where:

C = Coupon (6.3)

F= Face Value (remember, 100)

P= Price (99.2)

n= years to maturity

Therefore

Finally, we have to find the effective annual rate, for that, we have to use the YTM as our nominal rate, since it is semi-annual, the number of compounding periods is 2 (two semesters in a year).

The formula goes as follows.

Therefore.

Best of luck.

answer; /// i do believe the correct answer is (30,000);

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.