10. You own $10, 000 in RBC bonds that have a 6.75% coupon. The market price...

Question

Question

Answer 1

Answer #1

Annual coupon=1000*6.75%=$67.5

Hence current yield=Annual coupon/Current price

=$67.5/$1197.50

which is equal to

=5.64%(Approx).

Answer 2

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