A $1,000 par value bond with a 14.99 percent coupon rate, currently selling for $1,184, has...

Question

Question

A $1,000 par value bond with a 14.99 percent coupon rate, currently selling for $1,184, has a current yield of

Answer 1

Answer #1

Annual coupon=$1000*14.99%=$149.9

Hence current yield=Annual coupon/Current price

=(149.9/1184)

which is equal to

=12.66%(Approx).

Answer 2

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