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 |
the annual interest payment divided by the current price |
Current yield is measured by dividing annual coupon by price. Current yield represents the return an investor would expect if the owner purchased the bond and held it for a YEAR.
The current yield on a bond is measured by ________. the annual interest payment divided by...
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.
(Current yield) Assume you have a bond with a semi-annual interest payment of $60 a par value of $1,000 and a current market price of $820. What is the current yield of the bond? The current yield of the bond is ___%.
(Current yield) Assume you have a bond with a semi-annual interest payment of $50, a par value of $1.000, and a current market price of $780. What is the current yield of the bond? The current yield of the bond is %. (Round to two decimal places.)
A bond has a par value of $1,000, a current yield of 7.125 percent, annual interest payments, and 5 years to maturity. The bond quote is 101.584. What is the amount of each coupon payment?
A bond with 13 years to maturity has an annual interest payment of $55. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY: % YTM: %
A bond with 18 years to maturity has an annual interest payment of $40. If the bond sells for its par value, what are the bond's current yield and yield to maturity? Round your answers to two decimal places. CY: % YTM: %
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 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 Pioneer Petroleum Corporation has a bond outstanding with an $70 annual interest payment, a market price of $890, and a maturity date in five years. Assume the par value of the bond is $1,000. Find the following: (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) a....
Myra Breck must choose between two bonds: Bond A pays $100 annual interest with semiannual payment and has a market value of $800. It has 10 years to maturity. Bond B pays $100 annual interest with semiannual payment and has a market value of $900. It has 2 years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds. (Round the final answers to 2 decimal places.) Current yield Bond A...