PK Software has 7.8 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 97 percent of par.
Requirement 1:
What is the current yield on PK's bonds? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Current yield %
Requirement 2:
What is the YTM? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Yield to maturity %
Requirement 3:
What is the effective annual yield?