Problem:
The outstanding bonds of The River Front Ferry carry a 6.5 percent coupon. The bonds have a face value of $1,000 and are currently quoted at 102.9.
Required:
Question: What is the current yield on these bonds?
1.60 percent
6.88 percent
6.49 percent
6.32 percent
2.37 percent
Please explain in detail and also provide full explanation.