Current Yield What's the current yield of a 6 percent coupon corporate bond quoted at a...

Question

Question

Answer 1

Answer #1

Answer

The correct option C : 5.8%

Explanation

current yield = Interest /price

(1000 *.006) / 1032

60 / 1032

0.058 or 5.8%

current yield = 5.8%

*Face value be $ 1000

interest =1000 *6% = 44

price = 1000*103.20% = 1032

Answer 2

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