You paid $965 for a corporate bond that has a 7.36% coupon rate. What is the...

Question

Question

You paid $965 for a corporate bond that has a 7.36% coupon rate. What is the current yield?

Answer 1

Answer #1

Given

Coupon rate = 7.36%

Coupon amount = Coupon rate * face value of bond (assuming bond FV as 1000$) = 1000*7.36/100 = $ 73.6

Current Yield = Coupon amount/Current market price of bond

= (73.6/965)*100

Current yield = 7.6269% or 7.627%

Answer 2

Similar Homework Help Questions

You paid $1,182 for a corporate bond that has a 18.14 percent coupon rate. What is...

You paid $1,182 for a corporate bond that has a 18.14 percent coupon rate. What is the bond's current yield?
1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If the...

1) A 10-year corporate bond has a coupon rate of 6% with annual payments. If the current value of the bond in the marketplace is $900, then what is the Yield-to-Maturity (YTM)? 2) A 10-year corporate bond has a coupon rate of 6% with annual payments. If the current value of the bond in the marketplace is $1100, then what is the Yield-to-Maturity (YTM)? 3) A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. If the...
A corporate bond is quoted at a price of 98.96 and has a coupon rate of...

A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.7 percent, paid annually. What is the current yield? 5.36 percent 4.75 percent 4.85 percent 4.24 percent 5.62 percent

What is the current yield for a bond that has a coupon rate of 8.3% paid...

What is the current yield for a bond that has a coupon rate of 8.3% paid annually, a par value of $1000, and 18 years to maturity? Investors require a return of 9.9% from the bond. (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)
You have just found an annual-coupon corporate bond with a 10% coupon rate and yield to...

You have just found an annual-coupon corporate bond with a 10% coupon rate and yield to maturity of 8.5%. It is trading at a premium for $1,098.42. What is the maturity of this bond?
A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. If the current...

A 10-year corporate bond has a coupon rate of 6% with semi-annual payments. If the current value of the bond in the marketplace is $900, then what is the Yield-to-Maturity (YTM)? How to do this on financial calculator?

Abari Gondi invested in a 22-year corporate bond with a coupon rate of 6.25%. The coupon...

Abari Gondi invested in a 22-year corporate bond with a coupon rate of 6.25%. The coupon payments are annual. The current price of this bond is 5000.46. What is the yield to maturity of the bond? 8.15% 8.56% 7.91% 7.82% 8.31%
a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5% (paid semiannuall) on a $1000 par value. if it is currently selling in the market for $1140, what is its yield to maturity? 9.18% 8.23% 7.89% 6.84%
A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5...

A $1,000 bond has a coupon rate of 9% that is paid semi-annually, and has 5 years until it matures. The current yield to maturity is 7% a. What is the price of the bond? ___________ b. What is the amount of the annual interest paid to the bondholder? ___________ c. Is this a discount bond or a premium bond? ______________________

A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15...

A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15 years. The current market yield is 7%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?