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Current yield is the annual interest of the bond divided by the current price of the bond. For example, if an investor owns a $1,000
Current yield is the annual interest of the bond divided by the current price of the bond. For example, if an investor owns a $1,000 bond which pays interest at 5%, and bond is trading at a discount at a price of $800, the current yield will be equal to
- 6.25%
- 5%
- 7%
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