A bond is priced in the market at $1,170 and has a coupon of 10%. Calculate...

Question

Question

A bond is priced in the market at $1,170 and has a coupon of 10%. Calculate the bonds current yield

The bonds current yield is __% (Round to two decimal places)

business finance

Answer 1

Answer #1

Annual coupon=$1000*10%=$100

Hence current yield=Annual coupon/Current price

=(100/1170)

which is equal to

=8.55%(Approx).

Answer 2

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