Determining the current yield


Question: A bond has a $1,000 face value and a $989 market value. The bond pays interest semi-annually, has a yield-to-maturity of 7.47 percent, and matures in 12 years. What is the current yield?

a. 6.67 percent

b. 7.41 percent

c. 7.47 percent

d. 8.01 percent

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Finance Basics: Determining the current yield
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