Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / If a 8

If a 8

Finance

If a 8.1% coupon bond with a $1,000.00 Par value is trading for $1,200.00, it has a current yield of _____

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of the current yield:-

Current yield = Annual coupon payments / Current price of the bond

= $1,000 * 8.1% / $1,200

= $81 / $1,200

= 6.75%