Lacy has a $1000 bond with a 6.2% coupon that she purchased for $1025. What is the yield of this bond? Round your answer to 2 decimal places.

asked May 26, 2018 87.3k views

5 votes

by Jstar

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1 vote

So the question is asking what is 6.2% of 1000? Then rounding our decimals?

Awaage answered May 27, 2018

8.4k points

2 votes

Answer:

6.04%

Explanation:

multiply the coupon rate with the face value, and divide with the purchase price

Dominic P answered Jun 1, 2018

7.9k points

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