A bond's face value is $2000.Its coupon is 9 percent.The bond's present market value is $1800.What is the current yield of the bond?

Question

Quizplus · Accepted Answer

A)Face value = $2000
Coupon (9%)= $180
Current yield = $180/$1800 = 10 percent
B)Face value = $2000
Coupon (9%)= $180
Current yield = $180/$1800 = 10 percent
C)Face value = $2000
Coupon (9%)= $180
Current yield = $180/$1800 = 10 percent
D)Face value = $2000
Coupon (9%)= $180
Current yield = $180/$1800 = 10 percent
E)Face value = $2000
Coupon (9%)= $180
Current yield = $180/$1800 = 10 percent

A Bond's Face Value Is $2000