Register
Health Foods bonds have 10 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 9%. They pay interest annually and have a 10% coupon rate. What is their current
220k views
5 votes
Health Foods bonds have 10 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 9%. They pay interest annually and have a 10% coupon rate. What is their current yield

User Linder
by
4.5k points

1 Answer

5 votes

Answer:

The current yield of the bond is 9.73%

Step-by-step explanation:

We can calculate the Current Yield of the Bond by using the following formula:

Current Yield = Coupon Interest / Current Market Price in step 1 * 100

Current Yield = ($1,000 * 10%) / ($1,064 from step 1) * 100

Current Yield = 9.37%

Step 1. Calculate the current price of the bond:

Health Foods bonds have 10 years remaining to maturity. The bonds have a face value-example-1
User Me Sa
by
4.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.4m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!