Computing the bond current yield


Suppose you read in the Wall Street Journal that a bond with face value $1000 has an annual coupon rate of 9.05% and a price of $857.66. What is the bond's current yield?

a. 7.39%

b. 10.55%

c. 9.50%

d. 8.44%

Solution Preview :

Prepared by a verified Expert
Finance Basics: Computing the bond current yield
Reference No:- TGS0670208

Now Priced at $5 (50% Discount)

Recommended (96%)

Rated (4.8/5)