A bond with an annual coupon rate of 4.8% sells for $970. what is the bond’s current yield?

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asked Dec 24, 2018 115k views

1 Answer

Anton Palyok · Answer 1 · 2018-12-28T22:14:14+0000

Given:

A bond with an annual coupon rate of 4.8%, bond value is $970. The bond's current yield can be calculated using this formula:

i = Fib

where i = bond yield
F = $970
ib = 4.8%
i = 970*(0.048)
i = $46.56

A bond with an annual coupon rate of 4.8% sells for $970. what is the bond’s current yield?

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