Computing the bond current yield
Suppose you read in the Wall Street Journal that a bond with face value $1000 has an annual coupon rate of 9.05% and a price of $857.66. What is the bond's current yield?
a. 7.39%
b. 10.55%
c. 9.50%
d. 8.44%
Now Priced at $5 (50% Discount)
Recommended (96%)
Rated (4.8/5)
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