Question
A bond that pays interest semiannually has a price of $981.45 and a semiannual coupon payment of $28.50. If the par value is $1,000, what
A bond that pays interest semiannually has a price of $981.45 and a semiannual coupon payment of $28.50. If the par value is $1,000, what is the current yield?
A. 5.81%
B. 2.90%
C. 2.85%
D. 5.70%
E. 5.52%
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
