The ____ yield is the annual dollar coupon interest paid on a bond divided by the...
The ____ yield is the annual dollar coupon interest paid on a bond divided by the bond's current market price.
Select one:
a.
interest
b.
coupon
c.
capital gain
d.
total
Homework Answers
Current yield = Annual coupon payments÷Bond price
Current yield is also called coupon yield.
Hence, correct option is B.
*Please rate thumbs up
Add Answer to:
The ____ yield is the annual dollar coupon interest paid on a
bond divided by the...
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the...
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the Market price b. Annual interest divided by Face value C. Same as current yield d. Same as market rate
The current yield on a bond is equal to Multiple Choice annual interest payment divided by...
The current yield on a bond is equal to Multiple Choice annual interest payment divided by the current market price. the yield to maturity. annual interest divided by the par value. the internal rate of return. None of the options are correct.
The current yield on a bond is measured by ________. the annual interest payment divided by...
The current yield on a bond is measured by ________. the annual interest payment divided by the current price the annual interest payment divided by the par value the annual interest payment divided by the maturity value the annual interest payment divided by the yield to maturity
D) Enper) Answer: 26. A bond is paying an annual coupon of 5%. Its YTM is...
D) Enper) Answer: 26. A bond is paying an annual coupon of 5%. Its YTM is 6%. What is the bond's current yield? A) 4.9% Pon of 5%. Its par value is $1,000 and its current price is $980. The B) PV = $980 5.1% 5% C) D) Tv-flood i = ? 6% YTM Answer: what are the two components of the required rate of return for a common stock? A) dividend yield and capital gain yield B) capital gain...
What is the yield of the following bond if interest (coupon) is paid annually? (Round to...
What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 8% 10 ?% $1,000.00
What is the yield of the following bond if interest (coupon) is paid annually? (Round to...
What is the yield of the following bond if interest (coupon) is paid annually? (Round to two decimal places.) Par Value: $1,000 Coupon Rate: 6% Years to Maturity: 10 Yield to Maturity:? Price: $850.00
An investor is considering purchasing a bond with a 7.45 percent coupon interest rate, a par...
An investor is considering purchasing a bond with a 7.45 percent coupon interest rate, a par value of $1,000, and a market price of $1,033.31. The bond will mature in nine years. Based on this information, answer the followingquestions: a. What is the bond's current yield? b. What is the bond's approximate yield to maturity? c. What is the bond's yield to maturity using a financial calculator? Note: Assume coupon payments are paid annually a. The bond's current yield is...
An investor is considering purchasing a bond with a 7.83 percent coupon interest rate, a par...
An investor is considering purchasing a bond with a 7.83 percent coupon interest rate, a par value of $1,000, and a market price of $870.83. The bond will mature in nine years. Based on this information, answer the following questions: a. What is the bond's current yield? b. What is the bond's approximate yield to maturity? c. What is the bond's yield to maturity using a financial calculator? Note: Assume coupon payments are paid annually a. The bond's current yield...
7.4 Unlike the coupon interest rate, which is fixed, a bond's yield varies from day to...
7.4
Unlike the coupon interest rate, which is fixed, a bond's yield varies from day to day depending on market conditions. To be most useful, it should give us an estimate of the rate of return an investor would earn if that investor purchased the bond today and held it for its remaining life. There are three different yield calculations: Current yield, yield to maturity, and yield to call. A bond's current yield is calculated as the annual interest payment...
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells...
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What's the bond's yield to maturity? o o 5.36% 5.68% o 6.75% o 7.85% A 10-year corporate bond has an annual coupon payment of 8%. The bond is currently selling at par ($1.000). Which of the following statement is NOT correct? The bond's yield to maturity is 8%. The bond's current yield is 8%. If the bond's yield to maturity remains constant,...
The yield to maturity on a bond is: Select one: a. Coupon rate divided by the Market price b. Annual interest divided by Face value C. Same as current yield d. Same as market rate
D) Enper) Answer: 26. A bond is paying an annual coupon of 5%. Its YTM is 6%. What is the bond's current yield? A) 4.9% Pon of 5%. Its par value is $1,000 and its current price is $980. The B) PV = $980 5.1% 5% C) D) Tv-flood i = ? 6% YTM Answer: what are the two components of the required rate of return for a common stock? A) dividend yield and capital gain yield B) capital gain...
7.4
Unlike the coupon interest rate, which is fixed, a bond's yield varies from day to day depending on market conditions. To be most useful, it should give us an estimate of the rate of return an investor would earn if that investor purchased the bond today and held it for its remaining life. There are three different yield calculations: Current yield, yield to maturity, and yield to call. A bond's current yield is calculated as the annual interest payment...
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What's the bond's yield to maturity? o o 5.36% 5.68% o 6.75% o 7.85% A 10-year corporate bond has an annual coupon payment of 8%. The bond is currently selling at par ($1.000). Which of the following statement is NOT correct? The bond's yield to maturity is 8%. The bond's current yield is 8%. If the bond's yield to maturity remains constant,...
Most questions answered within 3 hours.
-
What are the main components of the fermentation process and
give an explanation of each? Include...
asked 7 minutes ago -
Explain which types of cells in the body (belonging to which
organs, etc.) are sensitive to...
asked 11 minutes ago -
A single cable supports an 703-kg elevator car. What is the
tension in the cable when...
asked 12 minutes ago -
among the three different ways to link CSS specifications to an
HTML document (inline CSS, document...
asked 24 minutes ago -
(1) Write the net ionic equation for the reaction that occurs
when equal volumes of 0.191...
asked 51 minutes ago -
On the night of April 18, 1775, a signal was to be sent from the
Old...
asked 35 minutes ago -
For each of the following strong base solutions, determine
[OH−],[H3O+], pH, and pOH 4.8 x 10^-4...
asked 30 minutes ago -
The magnitude of the electric field inside a capacitor is 6.6 x
106 N/C. What is...
asked 30 minutes ago -
Organizations may have only a few products or many products in a
product line. Consider Campbell...
asked 43 minutes ago -
could you please help me to explain the nmr splitting
integration and chemical shift and assignment...
asked 39 minutes ago -
A
29.0 cm diameter coil consists of 23 turns of cylindrical copper
wire 2.00 mm in...
asked 45 minutes ago -
Q1
Two of your friends each received the results of their
first midterm exam this term....
asked 1 hour ago