Ask Question
14 June, 13:43

Determine the current yield on a corporate bond investment that has a face value of $1,000, pays 4.60 percent, and has a current price of $950

+5
Answers (1)
  1. 14 June, 15:14
    0
    To find the current yield - take the annual interest payment and divide it by the current bond price.

    To find the annual interest payment - take the interest rate and multiply it against the bond's face value.

    Annual interest payment = ($1,000) (.0460))

    Annual interest payment = $46

    To find the current yield - take the annual interest payment and divide it by the current bond price.

    Current yield = $46/$950

    Current yield = 4.84%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Determine the current yield on a corporate bond investment that has a face value of $1,000, pays 4.60 percent, and has a current price of ...” 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