What is current yield


Assignment:

Current yield : Consider a $1,000 par value, 7% annual coupon bond. The bond matures in 9 years. Assuming the bond's required return is 10%, what is its current yield? (Hint: You need to figure out the price of this bond first and then its current yield.)



A.  8.52%


B.  10.00%


C.  8.46%


D.  7.00%


E.  8.37%

Please show how you got the answer.

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Finance Basics: What is current yield
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