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20 January, 21:44

Suppose that today, the current yield for a corporate bond is 4.3%. If the market price goes up by 11% tomorrow, compute the current yield after the increase.

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  1. 21 January, 01:28
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    (4.3/A) * 100

    The formula for current yield is given as

    CY = Annual interest payment / Current Bond Price

    Although the current bond price wasn't stated in the question but I'll assume a variable to it so that you can always substitute whenever you get a value.

    Assuming the current bond price is A, the current yield will then become

    (4.3/A) * 100
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