Delray bonds offer a coupon rate of 4.6 percent and currently sell at 99.2 percent of face value.What is the current yield on these bonds?

Name: Delray bonds offer a coupon rate of 4.6 percent and currently sell at 99.2 percent of face value.What is the current yield on these bonds?
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Question

Quizplus · Accepted Answer

Assuming a $1,000 face value: (0.046 × $1,000)/ (0.992 × $1,000)= 0.0464,or 4.64%
You can also compute this as: 4.6% / 99.2% = 0.0464,or 4.64%

Delray Bonds Offer a Coupon Rate of 4