A 12% coupon bond that matures in 6 years is selling for $1,150. What is the bond’s current yield and yield to maturity (YTM)? Assume semi-annual interest payments.
Current Yield=10.44%; YTM=8.74%
Current Yield=8.74%; YTM=10.44%
Current Yield=12.00%; YTM=9.67%
Current Yield=9.67%; YTM=12.00%