Answered: Find the current yield (as a %) of a…

Find the current yield (as a %) of a bond whose coupon rate is listed as 4.375 and currently selling at a premium of 104.375. Round to the nearest tenth percent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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Find the current yield (as a %) of a bond whose coupon rate is listed as 4.375 and currently selling at a premium of 104.375.

Round to the nearest tenth percent.

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