Question
What is the current yield for a 12-year 8% coupon bond with a par value of $1,000 that is selling for $928.27? Round your answer
What is the current yield for a 12-year 8% coupon bond with a par value of $1,000 that is selling for $928.27? Round your answer to 4 decimal places. For example if your answer is 3.205%, then write down 0.0321.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the current yield for a bond we use the formula textCurrent Yield fracAnn...
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Step: 2
Step: 3
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
