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 current yield on a bond is equal to Multiple Choice annual interest payment divided by...
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
(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.)
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....
Which one of the following relationships applies to a par value bond? Multiple Choice Yield to maturity > Current yield > Coupon rate Coupon rate > Yield to maturity > Current yield Coupon rate = Current yield = Yield to maturity Coupon rate < Yield to maturity < Current yield Coupon rate > Current yield > Yield to maturity
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
Bond Bond Value Current Yield Bond A Bond B Bond C Discount Rate 5.00% 15.00% 15.60% Roen is planning to invest in five-year, 15% annual coupon bonds with a face value of $1,000 each. Complete the table by calculating the value of each bond and the current yields at the various discount rates. There is a distinct relationship between the coupon rate, the discount rate, and a bond's price relative to its par value. Based on your preceding calculations, complete...
Preston Corporation has a bond outstanding with a $90 annual interest with a semiannual coupon payment, a market price of $1,083, and a maturity date in 10 years. Assume the par value of the bonds is $1,000. Find the following: (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.) M M a. The coupon rate b. The current yield c. The yield to maturity d. The yield an investor would realize if...
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?