What is the current yield for a 12-year 8% coupon bond with a par value of...
What is the current yield for a 12-year 8% coupon bond with a par value of $1,000 that is selling for $928.27? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
Homework Answers
| Current Yield | = | Annual Coupon/Current Price | |||||
| = | $ 80 | / | $ 928.27 | ||||
| = | 0.0862 | ||||||
| Working: | |||||||
| Annual Coupon | = | Par Value x Annual Coupon Rate | |||||
| = | $ 1,000 | x | 8% | ||||
| = | $ 80 | ||||||
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What is the current yield for a 12-year 8% coupon bond with a
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