Question
A bond has a face value of $1,000, a coupon rate of 8%, and 14 years to maturity. If the bond is selling for $1,159
A bond has a face value of $1,000, a coupon rate of 8%, and 14 years to maturity. If the bond is selling for $1,159 today, what is the current yield of the bond (in percentage)?
Round your answer to 2 decimal places.
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Advanced Modelling In Mathematical Finance
Authors: Jan Kallsen, Antonis Papapantoleon
1st Edition
3319458736, 978-3319458731
