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emaining Time: 1 hour, 06 minutes, 59 seconds. Question Completion Status: QUESTION 7 Bonds issued by XYZ have a par value of
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Answer #1

Question 7

Current yield of bond = annual coupon payment/ current market price

current market price = $ 940

Total Return = end value - begining value + coupon / begining value  

.17 = 940-960+C /960

coupon = $183.20

Therefore current yield of bond = 183.20/940 = 19.49% (rounded off two decimal places)

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