Annual interest on a bond divided by its market price is called:
Current yield is defined as annual coupon interest divided by the current price of the bond
CURRENT YIELD = ANNUAL INTEREST/CURRENT PRICE
Answer : Current Yield [Thumbs up please]
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 ____ 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
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
A 12-year annual payment corporate bond has a market price of $925. It pays annual interest of $60 and its required rate of return is 7 percent. By how much is the bond mispriced? -1.51% -1.26% -1.01% -0.76% -0.51% -0.26% -0.01% 0.24% 0.48%
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 annual market interest rate (yield to maturity) on a $1,000 par value bond with a 9.0% annual coupon rate, semiannual coupon payments, and two years to maturity is 8.2%. What must its price be? $1,014.49 $1,025.53 $949.61 $989.06
Sue purchases a 10-year coupon bond with semi-annual coupons at a nominal annual rate of 4% convertible semi-annually at a price of $1,021.50. The bond can be called at its par value X on any coupon date beginning at the end of year 5. The price at which Sue purchases the bond guarantees that Sue will receive a nominal annual rate of interest convertible semi-annually at 6%. What is X?
rent annual cash dividend divided by the current market price per share Collapse QUESTION 22 Taylor, Inc. has sales of $13,70 sol es of $8.999 and debt equity ratio of 0.55. If its return on equity is 17 percent, what is its net incon A
12- You are interested in purchasing a 30-year, semi-annual bond with a current market price of $1015.75. If the yield to maturity is 6.85% and the face value is $1,000, what must the coupon rate be on the bond? (6.97%) 13- Suppose a 7.75% coupon bond with 15 years to maturity and a face value of $1,000 presently has a yield to maturity of 7.25%. Assuming annual interest payments, what is the price of the bond? ($1,044.83)
The market price for a bond that matures in 10 years is $ 900 and its even value is $ 1,000 and pays 8% interest (4% semi-annually). What is the expected rate of return on the bond? Without calculator.