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You paid $1,182 for a corporate bond that has a 18.14 percent coupon rate. What is...

You paid $1,182 for a corporate bond that has a 18.14 percent coupon rate. What is the bond's current yield?

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Answer #1

Annual coupon=$1000*18.14%=$181.4

Hence current yield=Annual coupon/Current price

=(181.4/1182)

which is equal to

=15.35%(Approx).

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