Ask Question
11 June, 15:13

A bond that pays interest semiannually has a price of $975.11 and a semiannual coupon payment of $28.25. If the par value is $1,000, what is the current yield

+5
Answers (1)
  1. 11 June, 15:32
    0
    5.79%

    Explanation:

    For the computation of current yield first we need to find the annual coupon is shown below:-

    Annual Coupon = Coupon payment * Semi annual

    = $28.25 * 2

    = $56.5

    Current Yield = Annual Coupon : Market Price

    = $56.5 : $975.11

    = 0.0579

    or

    = 5.79%

    Therefore for computing the current yield we simply applied the above formula so that the correct rate could come
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A bond that pays interest semiannually has a price of $975.11 and a semiannual coupon payment of $28.25. 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