In October 2008, Abbott, Inc. issued $100 million in bonds. These bonds originally had a 25 year maturity, a 7.5% coupon rate and annual interest payments on a $1,000 Par value. When they originated, the bonds sold at par. Since origination, the required rate of return on Abbott bonds has hovered between a low of 6.35% to a high of 9.5% and currently has a yield to maturity of 6.5%. What is the current yield for Abbott?

In October 2008, Abbott, Inc. issued $100 million in bonds. These bonds originally had a 25 year maturity, a 7.5% coupon rate and annual interest payments on a $1,000 Par value. When they originated, the bonds sold at par. Since origination, the required rate of return on Abbott bonds has hovered between a low of 6.35% to a high of 9.5% and currently has a yield to maturity of 6.5%. What is the current yield for Abbott? rd coup rate t0 N0 C rate 7% 7.50% M n $1,000 25 2002 20 N present 10 9.50% M = 2 M = 1000 Current yield = 6.50% m 1