Bonds issued by Bianca Time have a par value of $1,000.00, were priced at $962.00 six months ago, and are priced at $834.00 today. The bonds pay semi- annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -5.53%, then what is the current yield of the bonds today? O 8.97% (plus or minus 2 bps) O 17.94% (plus or minus 2 bps) O 15.55% (plus or minus 2 bps) O 7.78% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer

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Bonds issued by Bianca Time have a par value of $1,000.00, were priced at $962.00 six months ago, and are priced at $834.00 today. The bonds pay semi-
annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -5.53%, then
what is the current yield of the bonds today?
O 8.97% (plus or minus 2 bps)
O 17.94% (plus or minus 2 bps)
O 15.55% (plus or minus 2 bps)
O 7.78% (plus or minus 2 bps)
O none of the answers are within 2 bps of the correct answer
Transcribed Image Text:Bonds issued by Bianca Time have a par value of $1,000.00, were priced at $962.00 six months ago, and are priced at $834.00 today. The bonds pay semi- annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -5.53%, then what is the current yield of the bonds today? O 8.97% (plus or minus 2 bps) O 17.94% (plus or minus 2 bps) O 15.55% (plus or minus 2 bps) O 7.78% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer
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