Final answer:
The student's question pertains to the computation of the yield to maturity and current yield on a bond. While the formula for current yield is relatively straightforward, the yield-to-maturity calculation is more complex and typically requires a financial calculator or spreadsheet for exact figures.
Step-by-step explanation:
The question involves calculating the yield to maturity (YTM) and the current yield of a bond. The yield to maturity is the total return anticipated on a bond if held until it matures, incorporating both the annual coupon payments and any capital gain or loss if the bond is purchased at a discount or premium to the face value. To calculate the current yield, divide the annual interest payment by the market price of the bond.
To calculate these yields, the formula for the current yield is coupon payment/market price, and the YTM involves a more complex formula where factors such as the current market price, the face value, the coupon rate, and the years until maturity are considered, and it's usually calculated using a financial calculator or spreadsheet tool. For this particular bond, the calculation details have not been provided, thus, the exact YTM cannot be given.