CURSUR werent. Suppose you purchase a 10-year $1,000 bond yielding $40 per year in interest for...

Question

Question

Answer 1

Answer #1

Answer is 3.85%

Face Value = $1,000
Annual Coupon = $40
Current Price = $1,040

Current Yield = Annual Coupon / Current Price
Current Yield = $40 / $1,040
Current Yield = 0.0385 or 3.85%

Answer 2

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