Heath Food Corporation’s bonds have 6 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 6% coupon rate. What is their current yield? Do not round intermediate calculations. Round your answer to two decimal places.
Current Yield for Annual Payments
Heath Food Corporation’s bonds have 6 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 6% coupon rate. What is their current yield? Do not round intermediate calculations. Round your answer to two decimal places.
Bond is a debt instrument issued by companies and government. It is a fixed income instrument which denotes a loan made by an investor to borrower. It pays fixed coupon rate to an investors. Bonds have maturity dates where principal amount is paid back.
A current yield is referred as a annual income of an investment which involves the interest payments and dividend payments and these payments divided by the current price of the bond.
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