A bond that pays interest semiannually has a price of $1,020.37 and a semiannual coupon payment of $26.50. If the p...

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business finance

Answer 1

Answer #1

Current Yield = Annual Coupon/Current Bond Price

Annual Coupon = $26.50 * 2 = $53

Current Yield = $53/$1,020.37

Current Yield = 5.19%

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Answer 2

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