Say that a bond pays $12 in interest and has a current price on secondary markets...
Say that a bond pays $12 in interest and has a current price on secondary markets of $132. Then the current yield on this bond is Select one:
a. 12 percent.
b. 11 percent.
c. $12.
d. 9 percent.
Homework Answers
Answer : Option D is correct.
Current yield on bond =Annual interest payment /Current market price =($12/$132)*100= 9%
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