4. Sitel Inc. has a bond which matures in 7 years and currently sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883 percent. The bond pays coupons semiannually. What is the bond’s current yield?
CURRENT YIELD = ANNUAL COUPON PV
FV = 1000; PV = 1020; I/Y = 10.5583 2 = 5.2942; N = 14; CPT PMT
PMT = $55
ANNUAL COUPON = 55x2 =110
CURRENT YIELD = 110 1020 = 10.78%