Asked by
Carmen Hackathorn
on Dec 08, 2024
Verified
If a 7.75% coupon bond is trading for $1,019.00, it has a current yield of
A) 7.38%.
B) 6.64%.
C) 7.25%.
D) 7.61%.
E) 7.18%.
Current Yield
Current Yield is the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.
Trading
The action or activity of buying, selling, or exchanging goods, services, or financial instruments.
- Acquire knowledge on the calculation of current yield for coupon bonds.
- Acknowledge the components that influence bond prices and yields.
Verified Answer
QT
Learning Objectives
- Acquire knowledge on the calculation of current yield for coupon bonds.
- Acknowledge the components that influence bond prices and yields.