John buys a $1,000 bond that pays 6% annual interest at 75. what is john's annual yield?

To calculate the current yield of bonds.

We have the given par value of $1000, a market price of $750 and an interest rate of 6%.

Formula of current yield:

Yield = (interest rate * par value) / (market price) * 100%

= ((0.06 * $1000) / $750) * 100%

= ($60/$750) * 100%

=0.08 * 100%

= 8%