1. A corporate bond ($1,000 par value) with a 9% coupon, paid semi-annually, is rated BB+. It is currently trading in the secondary market for $1,025.
The bond's current yield measures
the bond's total return potential
the growth portion of total return
the income portion of total return
2. A corporate bond ($1,000 par value) with a 9% coupon, paid semi-annually, is rated BB+. It is currently trading in the secondary market for $1,025.
What is the bond’s current yield?
9.00%
4.39%
8.78%
4.50%