Question

apters 6-8 0 Saved Help Save & Exit Submit What's the current yield of a 4.20 percent coupon corporate bond quoted at a price of 101.78? (Round your answer to 2 decimal places.) Current yield %

Answer 1

$Current Yield = Annual Interest Income/ Price of the bond$

X B4/B1 В5 A В 101.78 1 Current Price 2 Coupon Rate 0.042 3 Par Value 100 B2* B3 4 Coupon Payment 5 Current Yield =B4/B1

fix 3В4, В5 A В 1 Current Price 101.78 2 Coupon Rate 4.20% 3 Par Value 100 4 Coupon Payment 5 Current Yield 4.2 4.13%

Corporate bonds generally have a par value of 100