Question
Bonds issued by Oxygen Optimization were priced at 1,174.86 dollars 6 months ago. The bonds pay semi-annual coupons, have a coupon rate of 10.42 percent,
Bonds issued by Oxygen Optimization were priced at 1,174.86 dollars 6 months ago. The bonds pay semi-annual coupons, have a coupon rate of 10.42 percent, just made a coupon payment, and have a face value of 1,000 dollars. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of 2.7 percent, then what is the current yield of the bonds today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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Bonds issued by Fairfax Paint have a par value of 1000 dollars, were priced at 1,027.49 dollars six months ago, and are priced at 947.87 today. The bonds pay semi-annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -2.97 percent, then what was the current yield of the bonds 6 months ago? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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