If you invest in a $1,000 bond and pay a price of $832, and the coupon rate on the bond is 4%, what is your “Current Yield” on your investment?: a. It is 4.81%. b. 5.67% c. 3.21% d. 4.29%
If you invest in a $1,000 bond and pay a price of $832, and the coupon rate on the bond is 4%, what is your “Current Yield” on your investment?: a. It is 4.81%. b. 5.67% c. 3.21% d. 4.29%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...
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1. If you invest in a $1,000 bond and pay a price of $832, and the coupon rate on the bond is 4%, what is your “Current Yield” on your investment?:
a. It is 4.81%.
b. 5.67%
c. 3.21%
d. 4.29%
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