Ask Question
16 June, 20:48

A bond that pays interest semiannually has a price of $1,043.47 and a semiannual coupon payment of $27.00. If the par value is $1,000, what is the current yield

+4
Answers (1)
  1. 16 June, 23:04
    0
    5.175%

    Explanation:

    Given that:-

    Par value = $1,000

    Market value = $1,043.47

    Semi-annual coupon = $27.00

    The computation of current yield is given below : -

    So, the annual coupon

    = Semi-annual coupon * semi annual basis

    = $27.00 * 2

    = $54

    So, the current yield

    = Annual coupon : Market value * 100

    = $54 : $1,043.47 * 100

    = 5.175%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A bond that pays interest semiannually has a price of $1,043.47 and a semiannual coupon payment of $27.00. If the par value is $1,000, what ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers