Sweet Sue Foods has bonds outstanding with a coupon rate of 5.32 percent paid semiannually and...

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Sweet Sue Foods has bonds outstanding with a coupon rate of 5.32 percent paid semiannually and...

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.32 percent paid semiannually and sell for $1,956.84. The bonds have a par value of $2,000 and 17 years to maturity. What is the current yield for these bonds?

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Answer 1

Answer #1

Current Yield = Annual Coupon/Current Price

Annual Coupon = 5.32% * $2000 = $106.4

Current Yield = $106.4/$1956.84

Current Yield = 5.44%

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Answer 2

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Sweet Sue Foods has bonds outstanding with a coupon rate of 5.32 percent paid semiannually and...

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